“Qatar’s lifting of the 12-year moratorium on the development of the North Field this April was a clear signal that the country wants to defend its position as the world’s largest LNG exporter against market encroachment by new supplies from the U.S. and growing capacity in Australia,” said Vandana Hari, founder of Vanda Insights.
The move would bring total LNG production up to 100 million tonnes a year by 2024, potentially worsening the global LNG glut.
“The outlook for oil remains bleak in the medium term on account of overcapacity and oversupply and in the longer term because of rapid growth in alternatives and energy efficiency in a decarbonizing world. Gas is a different story — it may not look promising for the next few years, but its future in the decades to come looks bright, as a cleaner-burning fuel,” added Hari.
“It also holds promise as a complement to renewables, resolving the intermittency issue of wind and solar power, as they take on a larger share in the electricity market, which in turn is expected to grow exponentially,” she said.
Other analysts said it’s a display of strength and resolve from Qatar.
“They’re trying to send a very clear signal that they won’t be bent and bowed by this pressure, and I think it may have implications globally,” Daniel Benaim, Senior Fellow at the Center for American Progress, told CNBC’s “Street Signs” on Wednesday.
