By Curtis Williams HOUSTON, March 2 (Reuters) - Venture Global has the biggest amount of LNG cargoes in the world that are not contracted and is ready to help stabilize the global markets as Qatar
Venture Global Steps In as Qatar LNG Output Stops After Attacks
Venture Global's Response to Qatar LNG Disruption
By Curtis Williams
Venture Global's LNG Position and Market Role
HOUSTON, March 2 (Reuters) - Venture Global has the biggest amount of LNG cargoes in the world that are not contracted and is ready to help stabilize the global markets as Qatar halts production following attacks from Iran, the company's CEO Mike Sabel said on Monday.
Significance of Qatari LNG Production
Qatari LNG production is equivalent to about 20% of global supply and plays a major role in balancing both Asian and European markets' demand for the fuel.
Impact of Iranian Attacks on QatarEnergy
State-owned QatarEnergy, 82% of whose clients are Asian, was set to declare force majeure on its LNG shipments after Iranian drone attacks on facilities in the sprawling Ras Laffan complex, according to a source with knowledge of the matter. The complex hosts Qatar’s gas trains — massive processing units that supercool natural gas into liquid form for export by ship.
Market Reactions and Venture Global's Strategy
LNG Price Uncertainty
The markets have not yet reflected what the price of LNG will be following Qatar's announcement, and with Europe still in winter it is a challenging time, Sabel told an earnings call on Monday.
Venture Global's Margin and Long-Term Outlook
Short-Term Gains
The higher LNG prices will help Venture Global's margin but the company believes low long term LNG prices are desired to increase demand, Sabel said.
(Reporting by Curtis Williams in Houston; Editing by Chizu Nomiyama)
