Future of LNG for Qatar
Australia on target to overtake Qatar as top producer of LNG globally:
http://www.rigzone.com/news/oil_gas/a/122274/Australia_to_Overtake_Qatar...
This further raises the issue that LNG is far more abundant than once assumed. The price of LNG is hardly skyrocketing.
What does this mean for the long-term of Qatar's economy each time more LNG is found around the world? To me it raises the question of whether or not Qatar can diversify in time.
The funny thing is that some of the biggest buyers of all this gas and oil are countries like China and India who can really play around if they choose to like forming their own cartels, etc..and they are some of the countries that create this huge and massive demand for this products.
Khanan you right I guess that explains why they are buying primes estates in Europe!..:)
QDCL you right, so after these Contracts run their term, and Qatar has broken even with the cost of investment into the receiving terminals. There will so much more LNG on the market. Even UK where Qatar Gas owns two of the receiving terminals is not guaranteeing to buy LNG from Qatar, even though Qatar invested big bucks there!
QIA is already taking steps to diversify.
Investing in real estate, industries, agriculture, hotels and many other revenue generating projects accross the globe.
They have other problems as well. Shale gas in the US is so plentiful the price has crashed and those LNG receiving terminals stand idle on the south coast. One terminal has applied to convert itself into an export terminal for LNG. This is one thing, plus Canada and China also have huge uptapped gas reserves. It is lucky Qatar has long term contracts with some of it's buyers, otherwise it would look really bad, instead of just bad.