Qatar’s LNG exports slowed in recent weeks compared with a year earlier as two of trains at Qatargas’ 77 million tons/year Ras Laffan plant were shut for maintenance. According to shipping tracking data, the facility loaded a total of 4.8 million tons of LNG on November 1-25, compared to 5.03 million tons in the same period last year. Unless loadings increase sharply in the coming days, Ras Laffan could fall short of the 5.95 million tons it exported in November 2019.
Ras Laffan’s 7.8mn t/yr train 4 faced compressor issues on November 19-22 and was put offline for repairs that could take around three weeks, market participants said. Earlier this month, Qatargas shut Ras Laffan’s 7.8mn t/yr train 5 for scheduled maintenance that lasted about 20 days. These shutdowns are estimated to remove around 12 LNG cargoes from the market.
Despite the COVID-19 pandemic, Qatar’s LNG exports have remained relatively steady for most of the year. More Qatari LNG went to the Asia Pacific region in recent months, while deliveries to Europe have dropped. Some Asian markets have emerged from the coronavirus-related downturn. A colder start to the winter also supported the demand for LNG. Meanwhile, European countries were battling a new wave of COVID-19 outbreak and reimposed lockdown measures, putting pressure on energy demand.
Asian markets accounted for 79% of Qatari LNG loaded in October, up from 71% in the same month last year. Europe received about 17% of Qatar’s LNG exports, falling from 20% a year earlier. Most of Qatari LNG has been typically exported to long-term customers in Asia. However, Qatargas’ parent company Qatar Petroleum recently set up a new trading arm that will enable the company to attract short-term purchases in the international market.
