Once LNG giant, Qatar now looks to US for gas
What's the story
Qatar, once the world's largest exporter of liquefied natural gas (LNG), is in talks to buy LNG from the United States under long-term contracts. The move comes as Qatar's LNG exports have been severely affected by disruptions in trade routes due to the ongoing US-Iran war. According to Reuters, Qatar's LNG exports have plummeted by a staggering 96%, resulting in nearly $24 billion losses.
Strategic shift
QatarEnergy seeking US LNG supplies
A Bloomberg report revealed that state-owned QatarEnergy is looking for supplies from both existing and under-construction export projects in the US.
This strategic shift indicates that Qatar is now looking beyond the Middle East to diversify its energy portfolio.
The move also highlights a major reversal in the region, as Qatar was the world's top LNG exporter before the war started in February.
Production decline
War's impact on Qatar's shipments
The ongoing war has severely impacted Qatari shipments, nearly halting them since the conflict began.
Just days after the war started, an Iranian drone and missile strike targeted Qatar's Ras Laffan facility, the world's largest LNG export plant, hitting its production capacity.
Qatari officials have said it could take up to five years to fully repair the Ras Laffan facility.