Analysis: China’s new crop of LNG buyers complicates Qatar’s long-term sales strategy
More LNG demand growth coming from short-term, spot market
Qatar relies heavily on long-term deals, big customers
China seeking to diversify supply from US, Australia
A new wave of LNG importers borne out of China’s gas market reforms is the new growth opportunity in Asia’s LNG market, but their limited procurement capability and prompt demand requirements mean they are active only in the spot market.
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This complicates the marketing strategy of large LNG producers like Qatar, which are mainly looking to sign long-term contracts, often with rigid terms and conditions such as a lack of destination flexibility, with established customers that have firm downstream demand.
For dozens of China’s…