Australia set to dominate global LNG – for now

By Sally Bogle 7 April 2017
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Gorgon LNG. Australia is expected to be the world’s leading LNG exporter between 2018 and 2023. (Chevron) Gorgon LNG. Australia is expected to be the world’s leading LNG exporter between 2018 and 2023. (Chevron)

Unless Australia’s exporters can find a way to produce LNG cheaply, the country’s impending role as the world’s leading LNG supplier may be short-lived now Qatar has signalled it will ramp up production from its North Dome gas field.

"Much attention is focused now on the cost-competitiveness of Henry Hub-linked LNG from the United States, but the substantial liquids credit of Qatari volumes and established infrastructure at Ras Laffan lends Qatar a tremendous cost advantage against all global projects," Gautam Sudhakar, director for global LNG at IHS, told Interfax Natural Gas Daily.

Qatar’s decision to lift its moratorium on development of North Dome could see it produce an extra 57 million cubic metres of gas per day in the next 5-7 years as the country seeks to regain its dominance in the global LNG market. During this period, the market’s supply surplus is set to reverse with demand expected to outstrip supply.

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