Thanks to the political weight in the world, the United States manages to hold the first rank among LNG suppliers. Therefore, to remain competitive, Qatar must sell huge quantities of liquefied natural gas now in a market that could be oversaturated in a few years. At the same time, an alternative supplier to the United States will have to cut the ties Washington has established using geopolitical dominance. But Qatar’s dreams can become goals and come true. Bloomberg Senior Energy Reporter Steven Stapczynski writes about it.
According to the expert, Qatar is on the verge of concluding a historic agreement. A few years ago, the world’s largest exporter shocked the industry by announcing a 60% increase in production through 2027. It was a classic move to grab market share and drive out competitors from the United States. and Australia.
However, grand plans are one thing, and entrenched reality is another. Since then, Qatar has found only a few buyers for new shipments, while investing heavily in development that may not bear fruit.
The first part of the problem for Doha is timing. The world needs LNG now, but not as much as it did in the middle of this decade, when the launch of industrial projects will likely coincide with similar actions by the United States and some other countries. This means that buyers are reluctant to sign long-term agreements with Qatar as they seek to negotiate lower prices by playing on infighting between producers.
But the clock is ticking, time is running out
warns Stapzinski.
As a result, the Middle Eastern country has entered into agreements for the supply of around 6 million tonnes per year from its newly discovered and developed fields. This is only a fraction of the total capacity of 49 million tonnes, which will be phased in from around 2026 to 2027. But contracts for these huge volumes will be signed by the end of this year.
In fact, Qatar is about to embark on one of the most ambitious LNG deals in industry history, offering competitive pricing combined with more lenient terms that will keep consumers queuing. to get a deal with that particular supplier.
The industry is running out of time, but either way buyers are taking advantage
Stapzinski summarized.
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