Qatar Targets New LNG Markets with Floating Terminals

Qatar Targets New LNG Markets with Floating Terminals

Qatar Gas Transport Company and Norwegian shipping business Hoegh LNG are collaborating on a joint project in order to expand Qatar’s liquefied natural gas (LNG) buyers’ market via floating import terminals, Reuters stated.

Hoegh LNG, a developer of floating LNG import terminals, expects to start work on the import terminal project in a matter of months, CEO Sveinung Stohle said to Reuters.

Hoegh LNG and Qatar Gas Transport Company, which handles the operation of a large fleet of LNG tankers, are studying countries in which they could build a floating terminal, mentioning South America and southeast Asia as attractive prospects, Stohle said, according to LNG Industry.

The Gulf state, which is currently facing a diplomatic crisis after Saudi Arabia and other Arab nations cut their diplomatic and transport links with Doha in early June, is battling tough competition for the LNG global market share with the emergence of new suppliers from Australia and the United States.

Qatar recently announced a plan indicating that the country will increase its LNG output by 30% to reach 100 million tons a year, along with the Japan’s supply deals that will expire early in the next decade. These prospects are driven by the country’s need to stimulate demand for its LNG.

“The whole strategy behind this agreement is to find new markets for Qatari LNG,” Stohle said.

The terminals, which are also known as floating storage and regasification units, are beneficial for developing countries that are looking for cheaper gas.

An almost 70% fall in spot LNG prices since February 2014 caused by the decreasing Asian demand, is enabling poorer countries to enter the LNG trading market.

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