Qatar Onslaught of LNG Supply to Shake-up the Market
By Aiswarya Lakshmi
Wednesday, August 26, 2015
Gas giant Qatar is the world’s top supplier of liquefied natural gas (LNG), but in the coming five years it could be surpassed by Australia, a shift which could weigh on its dominance in Asia, reports Reuters.
Asia accounts for almost three quarters of the global market and has paid the highest prices. And Qatar is becoming commercially sharper, using traders and tenders to grab new customers, and fighting to hold on to its share in the prized Asian market.
According to Noel Tomnay, head of global gas and LNG research at Wood Mackenzie, previously, Qatar’s strategy had been about retaining price, in future it’s going to be about retaining market share.
As lots of Australian LNG comes into the market, it’s inevitably going to push out some Qatari volumes from Asia. This has prompted Qatar to work more closely with trade houses who are focused on short-term deals, often in riskier markets, while also lowering its price expectations, he said.
Qatar’s largest customers are Japan, South Korea and India.
Meanwhile, the deadlock over a multibillion-dollar liquefied natural gas (LNG) supply deal between Pakistan and Qatar has persisted in the wake of refusal by the independent power producers (IPPs) to provide bank guarantees to ensure payments for gas purchase.
Petroleum and Natural Resources Minister Shahid Khaqan Abbasi declared that an agreement would be signed with Qatar in the next six weeks.