Qatargas aims to be key LNG supplier to Europe
Qatargas is looking to become a leading Liquefied Natural supplier to Europe, although the state-owned company’s prices might not retain National Balancing Point indexation going forward, Alaa Abujbara, Chief Operating Officer for commercial and shipping, said.
Abujbara made the comments at the Gastech conference in Goyang, South Korea.
The major supplier forecast that European demand for uncontracted volumes could reach 150 million mt/year by 2025, around 40 per cent of current European gas demand, buoyed by economic recovery, increasing environmental regulations and declining regional output.
"In the longer term, Europe has a clear and strong need for significantly more LNG, and it's going to come soon," Abujbara said.
"The 150 million mt of LNG are going to be very challenging to bring on stream, and people need to start thinking about it as early as possible," he added.
Abujbara cautioned that LNG prices in Europe might not retain their NBP indexation, as stronger demand from other regions would mean that European buyers would need to compete in order to secure volumes.
"The pricing is a minor issue," Abujbara said.
"I think in the future we are going to see a shift in the market ... it's not going to be NBP pricing anymore."
However, Abujbara did not cite an alternative indexation point when asked what could replace NBP.