Qatar Petroleum (QP) has been “making major inroads” to secure a variety of buyers for its long-term LNG supplies ahead of major production increases.

With demand for hydrocarbons uncertain due to the potential lasting impacts of the COVID-19 pandemic and a push towards cleaner energy, trading in-house is expected to offer producers greater control and flexibility, as well as direct access to spot markets to complement long-term supply agreements.

QP has responded to that trend with its recently launched QP Trading, which will carry out physical and derivatives trading to manage risk for the parent. The increased capabilities should be another boost to Qatar’s LNG advantages, alongside its very low production costs and the relatively high liquids cut of its North Field gas, as it prepares to ramp up exports.

Elsewhere, China’s state-controlled PetroChina estimates that the recent LNG price slump has resulted in delays to FIDs for c.97mn t/yr of new liquefaction capacity.

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14th December 2020