Qatar May Find Value in U.S. LNG Projects, Wood Mackenzie Says

Qatar, the world’s largest producer of liquefied natural gas, may get better value investing in U.S. supply instead of expanding existing facilities, according to Wood Mackenzie Ltd.

Qatar Petroleum International and Exxon Mobil Corp. (XOM) may send LNG from their Golden Pass facility in Texas on the U.S. Gulf Coast to the U.K., Wood Mackenzie said in an e-mailed statement yesterday. That would free up supplies from Qatar to be directed to Asia, the Edinburgh-based consultant said.

Qatar Petroleum, the country’s state-owned oil company, holds excess LNG shipping capacity and space at the U.K. South Hook receiving terminal, said Wood Mackenzie. That may provide a cost advantage of as much as $1.50 per million British thermal units over other proposed U.S. export projects for European supply, according to the report.

“A Golden Pass liquefaction project could offer advantages over some other proposed U.S. LNG projects, including lower development costs and less financing challenges,” Noel Tomnay, a Wood Mackenzie gas consultant said in the statement.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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