While competition between LNG producers is set to intensify over the next few years as projects come onstream such as in Australia, Qatar is set to cement its position as a leading LNG producer. Qatari LNG is viewed as highly competitive, given its track record in gas production and LNG production and exports.
“With global activity levels and costs low, now is a good time to add new capacity even if the LNG market does presently look over supplied,” said Giles Farrer, research director of global gas and LNG supply for at Wood Mackenzie. “By the time new capacity is commissioned in 5-7 years’ time, new pre-FID LNG supply is likely to be required in the global market.
“It’s a signal that Qatar intends to increase its market share, which has been falling as other regions have built new capacity,” Farrer added. “But it is also a threat to other developers of new capacity worldwide, as Qatar can add new capacity at a lower cost than anybody else.”
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