US and Qatari LNG: Competitors or a parallel universe?

When you produce jelly beans and someone else produces jelly beans, you would naturally be competitors. Right? Well, not always. Because even in LNG, jellybeans are not equal to jellybeans. LNG projects are big, very expensive, and need to produce their stuff for decades and sell it to fetch the investment back with a decent rate of return. This means that you usually want long-term customer engagement with a contract that defines volumes and price. This way – as a producer – you can minimize risk. Once you have this customer, you don’t compete with anyone. 

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