Turkish Weekly: Qatar, King of LNG, Faces Challenges in Asia

The negotiations between Pakistan and Qatar for the importation of LNG from Qatar are hindered because of Malaysian rivalry, according to Pakistani Petroleum and Natural Resources Ministry.

When negotiations between Pakistan and Qatar took longer than expected, Qatar’s LNG kingdom became a main concern in Asia. According to experts, LNG king Qatar faces formidable challenges and competition.

“Firstly, a changing landscape in the global gas markets with more competitors entering the scene and the emergence of new LNG-exporting hubs. Secondly, the increase in supply will lead to lower prices,” said Naser al-Tamimi, a U.K.-based Middle East analyst.

“The availability of alternative supplies into Asia will allow buyers there to negotiate hard over long-term supply contracts,” he said.

According to al-Tamimi, this may mean a challenge to the standard Qatari model of tying long-term contracts to oil prices rather than natural gas prices.  MORE