Perspectives and strategies for LNG expansion in Qatar: A SWOT analysis

Abel Meza, Muammer Koç and Mohammed Saleh Al-Sada

Resources Policy, 2022, vol. 76, issue C

Abstract: During the 2010s, the global LNG markets, production, and infrastructure went through a remarkable evolution. Countries like Australia, the US, and Russia have registered records of sanctioned LNG capacity to export all over the world, pushing Qatar to reconsider of expanding its LNG production in the market. Nevertheless, an unexpected blow came in early 2020 with the COVID19 pandemic, which resulted in a demand shock in the LNG market. With the LNG exporters locked in a boom and bust cycle for the next years, it is time to make an in-depth SWOT analysis of the LNG market, exporters, importers, production, and capacity. We analyze challenges and opportunities the exporters would likely face in their future expansion projects. This analysis identifies the internal and external factors playing a crucial role in expanding LNG infrastructure to formulate strategies from Qatar's perspectives to strengthen its position in the market. The paper concludes that, in the short term, even under the heightened competition of new LNG oversupply, the COVID-19 economic shock and collapsing demand reinforced some trends and threats, but the LNG market would recover faster than other energy sectors. Qatar will continue to be a reliable, responsive, and low-cost supplier due to its strengths such as large and efficient production capacity, flexible and agile logistics network, long-term market relations, and leadership position in the market. In the long-term, it is expected that the crisis may act to balance out the market in supply and demand terms, generating new opportunities and leading from the punctual but significant effects of the pandemic to a regrowth of the market, with reaping benefits for Qatar.

Keywords: LNG markets; Qatar; SWOT; Oversupply; COVID-19 pandemic (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420722000824
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420722000824

DOI: 10.1016/j.resourpol.2022.102633

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().