DOHA: Qatar’s efforts to secure new liquefied natural gas (LNG) contracts with Japan and South Korea have hit obstacles as increased competition from the United States, the UAE, and Oman offers buyers more flexible contract terms.
Qatar, once the dominant LNG supplier to these key Asian markets, faces resistance due to its insistence on restrictive destination clauses, while competitors provide shorter-term contracts with no destination limits. This flexibility allows buyers to resell cargoes if needed, making US and UAE supplies more attractive.
With Qatar’s major LNG deals with Korea Gas Corp (KOGAS) nearing expiration and Japan’s LNG demand declining, Doha’s market share may shrink further if new agreements are not reached.
