So, does a new tranche of Quatarian gas make North American LNG less or more competitive? Regardless of your answer does anyone dispute that Alaskan Arctic LNG, with the liability of financing an 800 mile pipe in the high cost North, will be the last to be financed (i.e. without government subsidy)? -dh
Last week we reported on the Qatari announcement that the No. 1 gas exporting nation (but not quite No. 1 footballing nation) was lifting its 12 year moratorium on increasing gas exports. Of course this had nothing to do with Iran’s joint ownership of the world’s best gas-field – called either North Field/South Pars, depending on what side of the Gulf one is looking from.
We stress again that the importance of this development for globally traded gas cannot be overemphasised. Not only does this put a large amount of new Qatari LNG capacity right at the top of the LNG project queue (pushing everyone else down) – but it also signals that the Qatari’s fear Iran also aggressively entering the same market in the short/medium term.
One further issue that might be driving the Qataris – and again which has consequences for the global gas market – is a potential view that unless gas is produced in the next few decades it might just stay in the ground for ever. Such a view could be driven by politics in the form of international carbon emission limitation….