Reuters: Qatar Raises its Game to Fend off Next LNG Giants

Gas giant Qatar is becoming commercially sharper, using traders and tenders to grab new customers, and fighting to hold on to its share in the prized Asian market.

Qatar is the world's top supplier of liquefied natural gas (LNG), but in the coming five years it could be surpassed by Australia, a shift which threatens its dominance in Asia -- which accounts for almost three quarters of the global market and has paid the highest prices.

"Previously Qatar's strategy had been about retaining price, in future it's going to be about retaining market share," said Noel Tomnay, head of global gas and LNG research at Wood Mackenzie.

"As lots of Australian LNG comes into the market, it's inevitably going to push out some Qatari volumes from Asia," Tomnay said.

This has prompted Qatar to work more closely with trade houses who are focused on short-term deals, often in riskier markets, while also lowering its price expectations.

"In the past Qatar did not need to be commercial. Now they are a lot more commercial, a lot sharper," said a trader at an international trade house. "They are dealing with traders more and have started participating in tenders." MORE