Tuesday 27 October 2009

Qatar eyes China as big new LNG volumes come online

Qatar is looking to China to absorb some of the huge increase in liquefied natural gas (LNG) supplies as the world's biggest LNG exporter nears completion of its plan to double production capacity this year.

Qatar inaugurates on Tuesday the second of three giant LNG plants it has started up in 2009. The plants are the largest in the world, and were expected to help Qatar's economic growth this year outperform oil-exporting Gulf Arab neighbours constrained by OPEC output quotas.

Tiny Qatar sits atop the world's third-largest gas reserves and has gambled tens of billions of dollars on developing its resources, but a huge amount of new supply is coming to a market which has lost some of its appetite in the biggest economic downturn in decades.

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