Qatar to accelerate LNG expansion as US stalls on export push
Demand for LNG is forecast to rise more than 50 per cent by 2040
Qatar will accelerate plans to expand exports of liquefied natural gas amid rising demand and a pause on growth projects in the US, a key rival supplier.
The nation, which vies with the US and Australia as the biggest shipper of the fuel, will develop a new 16 million tons a year capacity project before the end of this decade, lifting annual production capacity to 142 million tons by 2030, Saad Al-Kaabi, the country's energy minister, said Sunday.
Qatar has already signed a succession of deals to sell supply from its current expansion to 126 million tons, including a 27-year pact with China Petroleum & Chemical Corp. and to European companies such as Eni SpA, TotalEnergies SE and Shell Plc. Demand for LNG is forecast to rise more than 50% by 2040, driven by rising consumption in Asia, according to Shell Plc.
The US imposed a temporary halt on new LNG export licenses in January while it studies the impact of higher shipments on climate change, the economy and national security. A pause on approvals could last as long as 14 months, according to White House energy adviser Amos Hochstein.
The US pause comers as producers and other advocates insist natural gas is a lower-emissions alternative to coal or oil and can complement rising adoption of renewable sources.