Qatar’s New LNG Expansion Aims To Squeeze Out US And Other Rivals

Qatar’s New LNG Expansion Aims To Squeeze Out US And Other Rivals

Qatar aims to strengthen its LNG exports, targeting a 25% global market share by 2030. Amidst the US’s export approval pause, Qatar plans a new 16 million tons per year project by 2030. It further aims to increase annual capacity to 142 million tons. Qatar’s dominance in LNG has been established by this growth, which is being fueled by 250 trillion cubic feet of additional gas in the North Field.

Securing long-term contracts with significant players like China Petroleum & Chemical Corp., Eni SpA, TotalEnergies SE, and Shell Plc is essential to its strategy. With demand expected to increase by 50% by 2040, particularly in Asia, Qatar’s growth satisfies demands around the world.

Experts estimate that Qatar’s growth will affect LNG projects around the world, especially in the US and East Africa, where funding and pledges are difficult to come by. Qatar may offer reasonable rates by utilising its status as the lowest-cost producer, reserves, cost-effective expansion, and industry contacts.

The Center on Global Energy Policy at Columbia University’s  Ira Joseph emphasizes Qatar’s proactive approach to LNG supply dominance. By offering favourable terms and securing financing for future projects, Qatar’s expansion reflects cost competitiveness and strategic advantages.