Skip to main content

Qatar to benefit from robust global LNG demand

LNG Industry,


Qatar is likely to benefit from robust global LNG demand over the next few years, according to QNB’s latest Qatar Economic Insight.

Asian demand

Continued strong Asian demand and slow supply growth are likely to support LNG prices over the medium term. Qatar has already benefitted from rising prices in Asia, where demand has been strong due to robust GDP growth and the switch to cleaner energy, particularly in China. As a result, Qatar has increased exports to Asia (71.0% of exports in 2013), mainly to Japan, South Korea and India.

European growth

The report adds that weaker growth in Europe has led to a divergence in prices. However, tensions with Russia could boost European LNG demand as an alternative to Russian pipeline gas.

Outlook?

Looking to the future, QNB believes that robust economic growth in Asia and an increasing reliance on LNG may drive demand. A recent US$ 400 billion for Russia to supply 38 billion m3 per year of gas to China for a period of 30 years could bring down Asian prices and boost European ones, leading to price convergence.

Major export projects in Australia, Papua New Guinea and the US are not expected to be completed until the 2020s, so demand growth is likely to outpace supply growth. Consequently, the report concludes, Qatar is likely to benefit from higher LNG prices for years to come.


Source: QNB Qatar Economic Insight - September 2014

Edited by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10092014/qatar-to-benefit-from-lng-boom-1382/


 

Embed article link: (copy the HTML code below):