- According to ship-tracking data, over a dozen ballast liquefied natural gas tankers are now loading off the coast of Qatar.
- Seasonally low output has also contributed to the lineups, assess analysts.
More than a dozen liquefied natural gas tankers are waiting their turn to fill up at Qatar’s port of Ras Laffan is a clear sign of how tight the global gas market has become, says an article published in Bloomberg.
According to dealers familiar with the situation, South Korean and Pakistani purchasers are looking to maximize shipments under long-term supply contracts with the Middle Eastern emirate, one of the world’s largest natural gas suppliers. The cargoes are linked to oil prices and cost approximately half as much as spot gas markets, where prices have risen to seasonal highs due to a global supply shortage.
Qatar Petroleum
A request for comment from Qatar Petroleum, which markets the country’s fuel, and Qatargas, which manages the facilities, was not immediately returned. Utilities and municipal gas suppliers all around the world are battling for a limited supply of natural gas before the winter, when demand for the fuel peaks in the northern hemisphere. Qatar is seeking new contracts to support a significant expansion and has been more willing than its competitors to change contracted volumes, whether up or down, as is the case now or during the peak of demand destruction due to the coronavirus pandemic.
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Source: Bloomberg
