Plans by Qatar and the US to boost LNG production may make life difficult for certain East African producers, but Australia’s projects are well positioned to weather the storm, experts have told Interfax Natural Gas Daily.
Qatar announced plans this week to boost its LNG capacity by 30% through debottlenecking and building new trains by early next decade. In North America, President Donald Trump is promoting US LNG in the hope of achieving a new ‘golden era’ for the country’s energy sector and is sanctioning yet more LNG trains, fed by plentiful onshore reserves of fracked shale gas.
Saul Kavonic, an analyst at Wood Mackenzie, believes the additional Qatari volumes will have only a modest impact on Aussie LNG production. “If Qatar increases its output to 100 mtpa, it will postpone the timing of global LNG market rebalancing – and prices rising again – by only a year or so. So it is unlikely to, in and of itself, delay any new developments such as [North West Shelf] backfill in Australia by too long,” Kavonic told Interfax Natural Gas Daily.
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