Qatar and Its Lose-Lose Problem in Global Gas Fight
- Qatar faces dilemma as demand slumps, storage nears limit
- Output cut or price war may be on cards for top LNG exporter
Photographer: Karim Jaafar/AFP via Getty Images
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Hemmed in by weak demand and scarce storage, the world’s biggest exporter of liquefied natural gas may soon face a stark choice: curb output or ignite a battle for market share that has the potential -- just as in the oil market -- to turn gas prices negative.
Qatar began in February redirecting LNG cargoes away from Asia, where the coronavirus was hobbling sales, and sending them instead to northwestern Europe. That quick fix didn’t last, as the pandemic soon engulfed Europe’s biggest economies and left Qatar struggling for places to park unsold cargoes.