Qatar Explores Boosting LNG Expansion as Gas Demand Booms - Bloomberg
Qatar is sounding out buyers about a further expansion of its liquefied natural gas capacity, according to people familiar with the matter, as Europe rushes to secure supplies in the wake of Russia’s war in Ukraine.
State-run Qatar Energy is talking to gas buyers about whether to enlarge a $30 billion project started in 2021 to build six gas-liquefaction plants, the people said, asking not to be identified. The company is assessing the cost of adding at least one more unit and how much interest there is for additional gas from customers, including some in China.
The talks are at an early stage and QE may stick with its existing plan, which will boost its maximum annual output by 60% to almost 130 million tons by 2027. The first gas isn’t expected to hit the market until 2025.
The company didn’t respond to a request for comment.
Qatar’s discussions underscore how quickly the long-term outlook for LNG has changed since Russia’s invasion. Europe is desperate to reduce its reliance on Russian energy, and a standoff over President Vladimir Putin’s demand that gas be paid for in rubles rather than euros or dollars has added urgency to their efforts.
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