US competitor: Qatar has created its world's largest LNG fleet

An environment of uncertainty and increased risks is not a reason not to make large investments in the future. This is exactly what the Qatari government is doing (unlike its American counterparts), rapidly developing the LNG industry while it is gradually fading away around the world. Bloomberg energy reporter Stephen Staprzynski reports.

Doha signs contracts to buy more ships ahead of a major LNG expansion. QatarEnergy has entered into four agreements with Asian firms. This Sunday alone, the energy giant received 19 gas carriers for long periods. The total number of tankers in the largest fleet in the history of the gas industry has already reached 109 units.



Each vessel has a capacity of 174 thousand cubic meters. They will be supplied from China and Malaysia. The deals to build these gas carriers cost Qatar $22 billion.

Qatar, chasing US rivals, needs more LNG tankers as it boosts the North Field's annual production capacity to 142 million tonnes by 2030 from the current 77 million tonnes.

Thus, the small Middle Eastern country intends to restore its dominance in the global LNG market. Projects in Australia and the US in recent years have eroded its dominance to the point that all three countries export about the same. However, the US recently temporarily froze permits for new projects, and Qatar's obsession with investment in new facilities has allowed it to once again take the global lead.

Thus, Doha will become the world's first operator of its own gas fleet with a huge number of ships. This will allow not only not to depend on the transportation market conditions, but also to outperform competitors with lower transportation costs, availability of raw materials, and guarantee export and delivery to the customer.