Qatar is currently investing heavily into expanding its LNG operations.
Qatar surpassed the United States as the world’s largest LNG (liquefied natural gas) exporter in April this year, as its LNG exports increased to a five-year high following the conclusion of seasonal maintenance on its LNG plants, according to Kamco Invest.
Qatar’s total LNG exports reached $11.9 billion in April 2022, up from $5.8 billion in April 2021. Qatar sent the majority of its LNG to China, followed by India and Japan.
According to the International Energy Agency, the Asia Pacific area will drive up to 50% of total natural gas demand increase during the timeframe. In terms of sectors, the IEA predicts that the industrial sector will account for almost 60% of global gas growth between 2021 and 2025.
Higher natural gas prices have been beneficial for the GCC, particularly for Qatar, a prominent worldwide LNG supplier.
Qatar, which accounted for 21% of the LNG exports market share in 2021, has emerged as one of the key countries from whom the EU is attempting to acquire more LNG as it scrambles to find new suppliers and increase LNG imports.
In 2021, the EU imported 24% of its 77 billion cubic metres (bcm) of LNG from Qatar, trailing Russia, at 20% and the United States who surpassed the country by a mere 2%, at 26%.
According to the International Monetary Fund, the EU’s uneasiness regarding Russian natural gas supplies is weighing on European economies and is projected to have a detrimental influence on the world economy.
Europe is currently facing the prospect of gas cuts, while Russia is struggling with the fallout from US and EU sanctions.
According to the International Energy Agency, Russian natural gas would account for only 25% of total EU natural gas demand in 2022. One of the primary factors keeping global gas prices high is the EU members’ effort to identify new natural gas suppliers.