US Shale Boom Unlikely to Impact Qatar's LNG Industry

Boom in US shale gas sector is unlikely to be a threat to Qatar’s LNG industry as demand from Asia is expected to remain strong, according to QNB Group.

Sharp drop in US LNG imports from Qatar because of abundant domestic gas supplies has been negated by strong demand from Asia, particularly from Japan after the Fukushima nuclear accident in March 2011, as per the report, Qatar News Agency (QNA) reports.

As a result, Qatar is therefore unlikely to lose its leading role in the global energy market for years to come, QNB says.

The US shale gas revolution is also unlikely to spread to other parts of the world, QNA adds citing the report.

While Asia has the largest proven reserve of shale gas in the world (19% of the world’s total), technical issues such as the depth of gas deposits, proximity to urban areas and the shortfall of technological skills, make exploitation costly and will prevent a development of the industry similar to that of the US in the near term, the report says.

The bank is of the view that Asia will likely continue to remain Qatar’s largest LNG importer over the medium term.

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