Mike Sabel, CEO of Venture Global, said that the company has the largest amount of LNG cargoes in the world that are not contracted and is prepared to stabilize global markets when Qatar stops production due to attacks by Iran.
Qatari LNG production equals about 20% of global supply. It plays a significant role in balancing the demand for fuel on both Asian and European markets.
A source familiar with the situation said that QatarEnergy (owned by the state) was about to declare "force majeure" on its LNG shipments following Iranian drone attacks against facilities at the vast Ras Laffan Complex. Qatar's Gas Trains are located in the complex. These "massive processing" units supercool natural gases into liquid form to be exported by ship.
Sabel said in a Monday earnings call that the'markets haven't yet reflected how much LNG will cost after Qatar announced its decision. With Europe still in winter, it is a difficult time.
Sabel stated that the company believes low long-term LNG prices would increase demand.
(source: Reuters)