Faisal Suwaidi: LNG demand will grow.
Qatargas sees tight LNG market
The market for liquefied natural gas may become “very tight” in coming years as demand from China, India and other nations increases faster than output capacity, QatarGas boss Faisal Suwaidi said.
Demand for LNG will continue to grow as cities across China buy more of the fuel than coal and consumption in Europe rises, Suwaidi said at the World Gas conference in Buenos Aires today.
European imports of LNG have risen 15% this year, he said, according to a Bloomberg report.
Qatar aims to more than double production to 77 millions tonnes per year by the end of this year.
QatarGas has contracts to sell LNG from its two newest production lines to countries including Japan, the world’s biggest importer, the UK, the US, Mexico, France and China, according to Bloomberg data.
Demand for LNG in China, India and other “new” markets will compensate for declining consumption in some “traditional” markets, al-Suwaidi said.
The majority of LNG is sold under long-term contracts that are tied to oil prices.
The Oxford Institute for Energy Studies said 30 September that the link to oil prices will be broken by the end of next year.