Qatar Lifts its LNG Moratorium
The recently announced intention by Qatar to lift its long-running moratorium on new LNG projects and to produce some 20 bcma of LNG in 5 to 7 years’ time is a highly significant development for the LNG industry. With its low-cost base and high condensate and LPG co-production, Qatar can compete with any of the established LNG suppliers (as well as Russian pipeline gas). This Comment assesses the implications for the market and addresses possible reasons for the timing of the announcement. The re-engagement of Qatar in the development of new LNG supplies is potentially good news for consumers but somewhat worrying for upstream players sitting on inherently high cost competing projects.