Qatar’s recent announcement that it would build the world’s largest LNG production facility did not prompt any applause from other LNG producers. Now, the tiny Gulf nation is also cutting its prices and expanding into the spot market to retain its number-one position in LNG exports. This could result in the death of some planned U.S. LNG projects. U.S. liquefied natural gas quickly became a threat for the world’s top exporter. While Qatar is still the cheapest LNG producer, the abundance of shale gas made it cheap and competitive in some markets, which in turn led to a flurry of LNG projects as the U.S. staked its claim on the international market. The country quickly found a place among the world’s largest exporters, thanks not least to the fact that U.S. LNG producers index their gas to Henry Hub benchmarks rather than crude oil. The quickly growing spot market […]

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