Qatar’s LNG sell out tightens Asian gas market over winter season

Qatar's LNG sell out tightens Asian gas market over winter season
Image courtesy of Qatargas

Qatar’s supplies designated for winter peak demand periods have been assigned for deliveries to China and South Korea, which could lead to a tight Asian market over the season. 

This development could lead to further increase in Asian spot LNG prices that have already jumped 55 percent since September, and has brought other regions, such as Europe, that depend on Qatari LNG on high alert, Reuters reports, citing trade sources.

China’s decision to shift away from coal and increase the use of gas to fight its environmental issues has had another effect on the global market that was believed to be swamped with LNG supply. With China’s imports rising by 43 percent global gas markets have been squeezed.

Qatar’s two export players, Qatargas, and RasGas only have a limited number of cargoes free during February and March according to trade sources, leaving little room for response to possible further demand spikes. This is a role Qatar previously played, delivering cargoes to global LNG markets during periods of peak demand.

However, certain unknowns, like the weather and crude oil price movements have got the trades questioning the sustainability of China’s rise in imports.


LNG World News Staff

Share this article

Follow LNG World News


<< Oct 2019 >>
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Budapest LNG Summit 2019

The Budapest LNG Summit is a niche event focused on the up and coming LNG region of Central & Eastern Europe (CEE).

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >

LNG Bunkering Mediterrean

The only 3-day course offering theoretical and practical training on LNG bunkering designed by the Mediterranean market leaders.   

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >