Qatar’s liquefaction plans will extend LNG glut

Qatar’s decision to boost export capacity could limit the potential for a recovery in global LNG prices
By Peter Stewart 5 July 2017
Qatar plans to sharply increase liquefaction capacity at its Ras Laffan facility. (Statoil)

Qatar’s plan to sharply increase gas liquefaction capacity at its 77-mtpa Ras Laffan facility over the next five years puts the emirate on a potential collision course with the United States, which is dramatically expanding its own LNG export capacity. Qatar’s decision also threatens to extend the current glut of LNG – which many analysts had expected to be gradually absorbed over the next five years – until at least 2025.

Global LNG prices have dropped from peaks of $21/MMBtu in 2014 to around $5/MMBtu following...

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