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    Qatargas' LNG Exports to Middle East Jump

Summary

Share of Qatargas’ export of LNG to Middle East, in overall LNG exports, has increased from just 8% in 2015 to 13% in 2016

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Corporate, Infrastructure, Liquefied Natural Gas (LNG), News By Country, Qatar

Qatargas' LNG Exports to Middle East Jump

Qatargas’ focus on servicing the Middle East market has borne fruit as its LNG exports to the region have seen a spike in 2016, its market share going up from 8% in 2015 to 13% in 2016, it said in the recently released Sustainability Report 2016.

Last year, Qatargas produced 41.40mn metric tons of LNG, slightly lower than 41.66mn mt produced in 2015. It is being merged with Rasgas, which operates the other 37mn mt/yr of national LNG output.

Qatargas has recently signed a four-year agreement with Kuwait Petroleum Corporation (KPC) to supply 0.5mn mt/yr of LNG to Kuwait over the next four years. “This further enhances Qatar’s reach in the Gulf Co-operation Council and the Middle Eastern LNG market,” the report stated.

Exports to other destinations have not seen any major change in 2016 over 2015. Asia remains Qatargas’ biggest market with 61% share, down from 62% in 2015. Europe’s share has also declined a tad from 27% in 2015 to 25% in 2016. Qatargas’ exports to Americas were a mere 1% of its overall exports compared with 3% in 2015 as locally produced gas in US has taken a greater market share.  

Focus on LNG Bunkering Market

Qatargas has been active in the last couple of years in focusing on new LNG applications. The company has signed various MoU to explore the area of LNG bunkering.

It signed an MoU with Maersk Group and Shell, before signing a second joint MoU with the United Arab Shipping Company (UASC) and Shell. Lastly, Qatargas also signed a special letter of intent with the Maersk Group to develop new technology that enhances the efficiency of LNG propulsion.

“The main advantages of using LNG as a bunker fuel are primarily environmental and financial to those adopting the technology, while it also leads to increasing demand for LNG and can support a stable higher price for suppliers,” the report said.

Qatargas believes that the bunker fuel development initiative will aid its preparations for stricter global sulphur cap requirements being drafted by the International Maritime Organisation, which is slated for ratification in 2020.

“A project on the use of M-type electronically controlled gas injection (ME-GI) is being undertaken to convert chartered long-term LNG carriers to use LNG as a propellant. The implementation of this environmentally friendlier alternative reduces emissions of greenhouse gases and other pollutants. The pilot project and the subsequent evaluation of this technology and its economic benefits are ongoing,” the report stated.

Qatargas’ Shipping Department became a member of SEA/LNG, which is a multi-sector industry coalition whose aim is to demonstrate, deliver, and amplify commercial opportunities for the accelerated development of LNG as a bunker fuel.