Qatar says Trump’s LNG export plan poses ‘no threat’

Noushad Thekkayil via Reuters Connect

Qatar’s energy minister Saad Al-Kaabi believes that US president-elect Donald Trump’s proposal to remove the cap on liquefied natural gas (LNG) exports will not be a concern for the Gulf nation.

Qatar will be able to cope with any competition, Reuters reported, citing Kaabi’s speech at the Doha Forum.

However, all LNG projects are driven by private enterprises, which look at their commercial viability, he added.

Al Kaabi said oil and gas projects were planned over decades and “survive governments”, adding Trump’s presidency could be “good for business”.

• Trump team will make waves in GCC energy and capital markets
• US ‘energy dominance’ will trigger global shifts
• Qatar faces rising competition for LNG exports to Asia

The minister, however, said that the European Union needs to revisit its corporate sustainability due diligence directive, which imposes penalties on companies failing to meet standards for environmental protection or forced labour in supply chains.

The $510 billion Qatar Investment Authority and other institutional investors may consider investing elsewhere to avoid penalties, he added.

The EU penalty can reach up to 5 percent of a company’s total worldwide revenue.

Qatar is the world’s largest LNG supplier and plans to expand output to 126 million tonnes per annum (mtpa) by 2027, from 77 mtpa currently, under the two-phase North Field expansion project.