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

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.

Automated summary

During the 2010s, the global LNG markets underwent significant changes and challenges, including the impact of the COVID-19 pandemic. This article highlights the need to analyze the LNG market, exporters, importers, production, and capacity using a SWOT analysis. It concludes that in the short term, the LNG market will recover faster than other energy sectors, and Qatar will remain a reliable supplier. In the long term, the crisis may bring balance and new opportunities, benefiting Qatar.