Sunday, 29th January, 2023
Sunday, 29th January, 2023
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Qatar invests billions to maintain dominance in LNG market

The world’s liquefied natural gas exporters are ramping up production dramatically to outperform the market and reducing competitors.

Qatar’s prices are falling and it is moving forward with a $29 billion project to increase fuel exports by more than 50%, raising the possibility of new plants elsewhere. According to people familiar with the matter, it has also set up a trading team to compete in the new spot market and push Asia more aggressively.

The strategy has been marked as a sign of change in Qatar, which has just increased production over the past five years and traditionally prioritized price over market share. Increased competition from the United States and Australia in particular has forced the Persian Gulf state to become more silent and attract buyers from Asia, a hot spot of gas demand.

The global transformation into renewable energy is adding to the country’s sense of urgency. Although recently LNG served as a bridge between coal and oil as a choice for solar and wind power, it has come down on some governments as a result of increased efforts to slow down climate change.

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