(MENAFN- The Peninsula) Sachin Kumar/ The Peninsula
Countries in Northeast Asian markets including Japan, South Korea, India, account for 75 percent of Qatar's liquefied natural gas (LNG) exports, according to the data of the Planning and Statistics Authority (PSA). The remainder of gas is exported to the rest of the world, mainly to Europe and Latin America.
Qatar's exports of liquefied natural gas represent about 65 percent of its total hydrocarbon exports, as per the PSA.
Qatar ranks third in the world in terms of natural gas reserves and it holds about 12.4 percent of the world's total proven gas reserves, according to the latest Statistical Review of World Energy released by BP. As per the data, Qatar's proven natural gas reserves stood at approximately 25 trillion cubic metres at the end of 2019.
According to the 2019 annual report of the International Group of Liquefied Natural Gas Importers (GIIGNL), Qatar's exports of liquefied natural gas amounted to about 77.8 million tonnes, which constitute about 21.9 percent of the total imported globally in 2019.
It has been a volatile year for the global oil and gas market. As a result of oversupply caused by sharply reduced demand due to the global economic downturn caused by the COVID-19, price of crude oil has declined sharply during the current year.
For Qatar, liquefied natural gas prices are more important than the price of crude oil, owing to LNG's high relative importance compared against total oil exports.
The methodology for pricing natural gas and LNG is different from that of crude oil pricing.
These are not priced at a global level, but instead geographically at a regional level. The price of natural gas in the United States is often lower than the prices of LNG in Northeast Asia, while prices in Europe generally range between the US and Asian prices.
LNG prices are subject to multiple mechanisms and methods. LNG transported by pipelines is priced in different ways from one country to another.
On the other hand, LNG is priced either at spot prices, which are subject to supply and demand factors, or by futures contracts, which are mostly linked to the expectations of oil prices in the international market.
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