Oil & Gas Qatar faces rising competition for LNG exports to Asia By Neil Halligan October 22, 2024, 7:56 AM Reuters An LNG tanker in Tokyo. Japan is among Asian the countries moving away from Qatar for LNG Qatar was leader in LNG exports US has overtaken Qatar now Asian importers want flexibility Qatar is facing increasing competition for liquefied natural gas exports to Japan and South Korea because of inflexibility on contract terms, reports suggest. The Gulf country is the third-largest exporter of natural gas behind the US and Australia and is traditionally the largest supplier of LNG to Asian nations. However, competition from the US, the UAE and Oman, who all offer preferential terms, has challenged the status quo for Qatar. Buyers in Japan and South Korea are favouring the shorter contract terms and the lack of restriction on the cargoes’ final destination, Reuters reported on Monday, citing industry sources. This allows buyers to sell cargoes they do not need at a future date. Contract talks with Qatar have stalled over the country’s insistence on destination clauses, where buyers have to state the final location of the purchase, sources said. Japan and South Korea are the world’s second and third-largest LNG importers, after China. Qatar dropped from being the top global LNG supplier in 2023 and was overtaken by the US. The country is going through a period of flat production as a result of a longstanding moratorium on development of the North Field, the world’s largest natural gas reservoir, which it shares with Iran. US and European visitors behind Qatar tourism surge The talk is of oil, but gas is most at risk in the Iran-Israel conflict Qatar to write off SME loans in bid to boost non-oil growth Once the embargo was lifted in 2017 Qatar started expanding its LNG production capacity from 77 million tonnes per year, aiming to reach 142 million by the end of 2030. The first phase – set to come fully online by early 2026 – will add 40 percent to Qatar’s LNG capacity. It is poised to boost the Gulf state’s hydrocarbon GDP by 27 percent in 2026 – despite a global drop in oil and gas prices – and make it among the fastest-growing economies globally. Hydrocarbons make up 80 percent of government revenues, although the country aims to diversify its economy in line with its National Vision 2030 by attracting foreign direct investment and building the tourism sector.
