Over a dozen liquefied natural gas tankers queued up for their turn to fill up at Qatar’s port of Ras Laffan has depicted the situation of the global gas market today.
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Among the buyers, South Korea and Pakistan are aiming to make the most of shipments under long-term supply contracts with the Middle Eastern emirate, one of the leading natural gas exporters, according to traders with the knowledge of the matter. The cargoes are associated with oil prices and cost about half of the current rate in spot gas markets, where a global supply crunch has seen prices boost to seasonal highs.
Qatar Petroleum, which is known for trading the nation’s fuel, and Qatargas, which sets off the facilities, didn’t immediately respond to a request for remark.
Utilities and city gas suppliers around the world are competing to lock in a finite amount of natural gas before the winter when demand for fuel peaks in the northern hemisphere. Qatar is aiming to sign more contracts to strengthen a huge expansion and has been more willing than its rivals to regulate contracted volumes, whether up as currently or down as during the peak of demand destruction because of the coronavirus outbreak.
More than a dozen ballast liquefied natural gas tankers are offshore Qatar’s coast, while another five are undergone for loading, as per the ship-tracking data compiled by Bloomberg. EF analysts mentioned last month that seasonally low output has also resulted in the lines.