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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
LNG
Qatar has so far locked in only 11.8m mtpa of its 48m mtpa expansion in long-term contracts, according to Platts.
- Qatar's energy minister Saad al-Kaabi had said in May that Qatar expects to assign all of the production expansion to long term contracts by the end of 2023.
- Among European countries, only Germany has finalised an agreement with Qatar, signing a long-term supply deal with ConocoPhillips for up to 2m mtpa of LNG. This is despite several European countries previously showing interest.
- European buyers are reticent to sign long term contracts with QatarEnergy because the pricing indexation is typically against dated brent, which exposes them to basis risk.
- European buyers are also reluctant to sign long-term contracts, fearing being left with excess volumes as gas consumption reduces to achieve net zero goals. The preference is thus for shorter term FOB deals.
- This may force Qatar to offer more flexible deals compared with its preference for 25-year destination-fixed contracts.
Source: S&P Global Commodity Insights
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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