#Qatar’s LNG Growth Puts Long-Term Sales Plan to the Test - Bloomberg

Qatar’s LNG Growth Puts Long-Term Sales Plan to the Test - Bloomberg

Tiny Gulf state Qatar is a giant in liquefied natural gas and has enjoyed remarkable success locking in sales of the fuel decades into the future. But to match its ambitious expansion plans, it must sell even more.

The nation’s latest wins were on display at last week’s LNG2026 conference in Doha, where state-run QatarEnergy revived languishing trade with Japan through a 27-year supply deal and even secured Malaysia — a traditional exporter — as a customer.

With these deals added, Qatar has agreed to sell about 39 million tons under long-term contracts since 2022, according to BloombergNEF — all to be fed by new facilities coming online from this year. That’s more LNG than India, the world’s fourth-largest buyer, consumes in a year.

This is a huge achievement. But these deals will absorb only about 60% of Qatar’s planned expansion in production — and that’s without including volumes from the country’s LNG export project in the US, which is set to start soon without long-term buyers nailed down.

Nor does it cover existing contracts, which will expire over the next few years with no certainty of renewal.

The most obvious customers have already signed up, leaving fewer new markets to crack. Talks with India, for example, have stalled as Qatar has resisted cutting prices.

This is forcing a rethink. For decades, Qatar has sold almost all its LNG under long-term contracts — an approach that has insulated the country from the volatility of the spot market.

That model, however, will no longer be sufficient as the volumes committed lag behind the pace of capacity growth. Qatar knows this, and has been building its expertise in spot sales.

With less urgency to push out volumes to meet contractual commitments, the country may even slow the ramp-up of new supply. Qatar was already forced to push back the start of its multibillion-dollar expansion amid supply-chain bottlenecks.

In a worst-case scenario, its growth ambitions could be trimmed. And given Qatar’s outsized role in LNG, any shift in strategy would have repercussions throughout the global market.

Adnoc Expands LNG Tanker Fleet to Boost Global Trading Ambitions - Bloomberg

Adnoc Expands LNG Tanker Fleet to Boost Global Trading Ambitions - Bloomberg

Abu Dhabi National Oil Co.’s shipping arm plans to order as many as six liquefied natural gas tankers as the state producer accelerates its push into global gas trading.

Adnoc Logistics & Services Plc will likely commission four to six vessels to support the group’s expanding international business, Chief Executive Officer Abdulkareem Al Masabi said in an interview Wednesday. The order would come in addition to 14 LNG carriers already contracted to serve export projects in the United Arab Emirates.

The fleet expansion underscores Adnoc’s broader effort to build a global gas portfolio. The company’s international investment arm, XRG, has been acquiring stakes in gas fields and export projects abroad while signing supply agreements, as the UAE seeks to position natural gas as a pillar of its economic growth strategy.

The new tankers will be ordered this year, Al Masabi said without disclosing the potential cost. Expanding the fleet would give Adnoc greater flexibility to market cargoes internationally rather than relying solely on long-term contracts.

Separately, Adnoc L&S is adding vessels to handle rising domestic export capacity. The company will take delivery of two LNG carriers this year — adding to four already received — to transport gas from Abu Dhabi’s existing export terminal at Das Island. A further eight ships will serve the Ruwais LNG terminal under construction on the Gulf coast, which is scheduled for completion in 2028.

Al Masabi also said tensions in the Red Sea have “calmed down,” though the route remains sensitive after months of attacks by Iranian-linked Houthi forces prompted many shipping companies to avoid the area. Some operators have recently resumed or increased voyages through the corridor.

DEWA buys #Dubai Holding's 24% Empower stake for $1.41 billion | Reuters

DEWA buys Dubai Holding's 24% Empower stake for $1.41 billion | Reuters

Dubai Electricity and Water Authority said it has acquired Dubai Holding's entire 24% stake in Emirates Central Cooling Systems (EMPOWER.DU), opens new tab for 5.18 billion dirhams ($1.41 billion), lifting its holding to 80%.

The deal, announced late on Tuesday, was struck at an implied price of 2.16 dirhams per share, a 14% premium to Empower’s last close, underscoring DEWA’s willingness to pay up to gain control of the district cooling provider.

The transaction consolidates Dubai’s district cooling platform under state utility DEWA at a time when the emirate’s rapid real estate expansion is driving rising demand for energy-efficient cooling infrastructure.

“This milestone is a testament to our dedication to creating value for our stakeholders by deepening our investment in a company like Empower,” DEWA Managing Director Saeed Mohammed Al Tayer said in a statement.

District cooling systems, which use centralised plants to distribute chilled water through pipe networks, are in demand as they consume significantly less electricity than conventional air conditioning.

Dubai Holding sold the stake through Emirates Power Investment LLC, a wholly owned subsidiary, and said in a statement the exit was part of a shift toward a “globally diversified investment strategy".

Empower, which listed on the Dubai Financial Market in November 2022 in an offering that was 47 times oversubscribed, commands more than 80% of Dubai’s connected district cooling capacity and serves major commercial, residential and mixed-use developments across the emirate.

The remaining 20% of its shares continue to trade on Dubai's stock exchange.

Most Gulf markets in red on US-Iran jitters | Reuters

Most Gulf markets in red on US-Iran jitters | Reuters

Most Gulf stock markets were subdued on Wednesday as renewed geopolitical tensions between the U.S. and Iran weighed on sentiment, with Dubai's exchange posting the biggest decline.

U.S. President Donald Trump said on Tuesday he was considering sending a second aircraft carrier to the Middle East, even as Washington and Tehran prepare to resume negotiations aimed at averting a new conflict.

Trump also said he thinks that Iran wants to make a deal with the United States on its nuclear and ballistic missile programs, and it would be "foolish" if they did not.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, hit by a 0.9% fall in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

However, Mobile Telecommunications Co (7030.SE), opens new tab jumped more than 5%, following an increase in annual profit.

Despite the overall bearish sentiment, underlying fundamentals remain supportive, with fourth-quarter earnings showing strong performances, said Joseph Dahrieh, managing director at Tickmill. He added that with the broader earnings season proving largely positive, the Saudi market could still stage a recovery if external geopolitical pressures ease.

Dubai's main share index (.DFMGI), opens new tab retreated 1.3%, weighed by a 8.6% plunge in Dubai Islamic Bank (DISB.DU), opens new tab after the sharia-compliant lender posted a decline in annual profit.

In Abu Dhabi, the index (.FTFADGI), opens new tab concluded flat.

Any potential U.S. military strike on Iran has sparked fears that regional countries would face the bulk of Tehran's retaliation. In mid-January, Saudi Arabia, Qatar, Oman and Egypt cautioned Washington against launching any such attack.

The Qatari index (.QSI), opens new tab also finished flat.

Qatar's Emir Sheikh Tamim bin Hamad al-Thani and Trump discussed in a phone call efforts for regional de-escalation and stability, the Emiri Diwan said on Wednesday.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1.3% - snapping a six-day winning streak - with Commercial International Bank (COMI.CA), opens new tab losing 1.9%.