AFR: Australia's Rising LNG Dominance Means Qatar Needs a New Strategy

For Qatar, the world's largest exporter of liquefied natural gas, preparing for a looming glut of the fuel isn't about being the biggest seller. It's about being the most efficient.

Global LNG output is expected to rise by a third to about 330 million metric tonnes annually by 2018, according to Sanford C. Bernstein & Co. Most of the new fuel will come from the United States and Australia, which is poised to topple Qatar as the biggest supplier. Unlike Saudi Arabia, the largest oil shipper, Qatar won't be fighting for market share at the expense of earnings.

Instead, the sheikdom will continue as one of the most profitable LNG sellers by taking advantage of the industry's lowest production costs and a control over supply routes that lets it redirect LNG quickly between continents to exploit opportunities, said Ibrahim Ibrahim, vice chairman of Ras Laffan Liquefied Natural Gas, known as RasGas. MORE