Qatar messing with Australia in the LNG market – thats a bit like shooting with an M16 at sparrows. Qatar produces some of the lowest cost LNG in the world. In today’s price environment, everybody is bleeding. Especially expensive Australian projects cannot cover costs. Qatar right just about covers its costs even in today’s price desert. And even make a penny or two on top. What’s most important is that combined with deep financial reserves, they can go for the jugular and not even break a sweat. But honestly, how does that make them look? Because the LNG market has only one way to go – straight up as the world progressively wakes up to the joys of unreliable Renewable Energy and when that happens, they want a reliable alternative. The fastest one to implement is LNG. A clue?
A dramatic move by Qatar to reduce LNG contract prices is setting the heavyweight up to snatch back its ranking from Australia as the world's largest exporter.