Qatar's LNG Crisis Spawns New Deals Worth Billions

The recent disruption to Qatar's LNG exports has led to a surge in interest for alternative gas supplies, with buyers and investors eyeing projects in Argentina, Timor-Leste, and Tanzania. At the Gastech conference in Bangkok, organizers estimated that agreements announced or advanced valued at around $60 billion were signed, including a 20-year U.S. LNG contract and a 35-year production agreement in the Gulf of Thailand.

The damage to Qatar's North Field and Iran's South Pars gas field has cut into their global market share, with Qatar losing roughly 17% of its export capacity. The repairs are estimated to cost around $5.8 billion and may take up to three years to complete. In the meantime, buyers are looking for alternative sources of gas.

One such deal was announced at the Bangkok conference, where China Gas Holdings signed a 20-year contract with U.S.-based Venture Global LNG to supply 0.5 million tonnes per annum of LNG starting in 2030. The gas will be sourced from Venture Global's export projects in Louisiana, expanding China Gas's geographical diversification.