Qatar embarks on LNG sales campaign after approving expansion
- Date: 04-Mar-2021
- Source: Arabian Business
- Sector:Oil & Gas
- Country:user-top-picks
Qatar embarks on LNG sales campaign after approving expansion
Executives from the top exporter of liquefied natural gas are jetting around the globe in a whirlwind bid to strike competitive deals with the fastest growing customers. They need to.
Qatar, the world's largest producer of the fuel, last month approved a $29 billion plan to boost capacity at its LNG export facility by 64 percent this decade, and is now urgently seeking to lock-in contracts and undercut rival developers from the U.S. to Australia.
That's why Qatar Petroleum executives were last week in Pakistan to sign a supply deal and pose for photos with Prime Minister Imran Khan, a few days earlier the nation announced an agreement with a trading house for supply to Bangladesh.
“Just in the last week or so we signed a couple of contracts and we're working on many more,” Qatar Energy Minister Saad Al-Kaabi said at the CERAWeek by IHS Markit conference on March 2.
In the rush to ink deals, Qatar agreed to rates well below those they were demanding less than a decade ago. Pakistan's latest contract is at a 10.2 percent link to oil prices, compared to 13.37 percent in 2016. The Bangladesh deal was done below the 11 percent mark, according to traders, who requested anonymity to discuss private