Qatar’s announcement Tuesday that it will double the size of its proposed new development on the giant North Field to 4 Bcf/d and use the gas for LNG exports will throw off course multiple new LNG projects elsewhere in the world. According to the International Gas Union, there were 879 million mt/year of proposed LNG projects waiting in the wings at the start of 2017. Qatar has said that the new project will raise its LNG capacity from 77 million mt/year to 100 million mt/year, an addition of 23 million mt/year, and that the project will take five to seven years to complete. 4 Bcf/d gas is the equivalent of 30 million mt/year of LNG, suggesting that some of the gas will be used either for domestic consumption or to support existing LNG capacity. However, the LNG market already expects a glut of new supply and is uncertain how it will be absorbed. Over the course of 2017, 42.45 million mt/year of new liquefaction capacity is expected to come on-stream, primarily in Australia and the US, but this year also witnesses the start-up of the first train at Yamal LNG in Russia, which will be Russia’s second LNG plant. The
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Source: CTRM Center