Al-Arabiya: Qatar looks East: Growing Importance of China’s LNG Market

Qatar has the world's third largest gas reserves of 871.5 trillion cubic feet (24.7 trillion cubic meters), representing about 13.3 percent of global proven oil reserves. The country also produced 158.5 billion cubic meters (bcm) or 4.7 percent global gas production, making Qatar the world’s fourth largest gas producer in 2013 after Russia, the United States and Iran, according to the BP Statistical Review 2014.

More than 84 percent of Qatar's gas exports are in the form of liquefied natural gas (LNG), more than two thirds of which (71.4 percent) are shipped to Asia.

Helped by rising global demand amid tight supply, Qatar has seen its LNG exports surge from more than 18 million tons per annum (MTPA) in 2002 to 77.2 MTPA in 2013, representing more than 42 percent of global LNG trade last year.

Japan is Qatar's largest market, followed by India, South Korea and China. Qatar had never exported any LNG to China until 2009 after Qatar Gas and China National Oil Corporation's (CNOOC) signed a sales and purchase agreement in 2008 to supply China with 2 MTPA through a long-term contract of 25 years. Tellingly, within five years (2008-2013), Qatar LNG exports to China jumped significantly from zero to hit over 7 MTPA by end-2013. As a result, Qatar supplied over one-third (37.7 percent) of China’s total LNG demand (18.6 MTPA), subsequently becoming Beijing's largest supplier. MORE