Qatar to Benefit on Rising Asia-Pacific LNG Prices: Credit Suisse

Qatar, currently the world's top liquefied natural gas (LNG) exporter at 77 million tonnes per year, stands to benefit the most from the continuing upsurge of LNG prices in the immediate and medium term in the Asia-Pacific Region.

In a market analysis released on Monday, Credit Suisse said requirements from Asian LNG users, including Japan and South Korea, that are not covered by existing supply agreements will render the expansion in LNG prices.

The bank said the two Asian countries may require an additional 25 million metric tonnes in 2012 that may rise to 49 million metric tonnes a year by 2015, much of which will most likely be sourced from Qatar.

"In the near term, Qatar is the only game in town. Looking at uncontracted supply, considering all Australia projects, all proposed projects in North America (both the US and Canada) and Qatar production that could be redirected from other markets, it is clear that Qatar has a near monopoly on uncontracted supply until 2015," it said.

"Qatar will seek to convert short-term supply into long-term contracts, while the ongoing need for spot [cargoes]...will support spot prices in the medium term," the bank added.

In September, Qatargas revealed plans to double its long-term supply contracts to Asia over the next several years, to 20 million metric tonnes annually.

Meanwhile, Qatar's state oil company, Qatar Petroleum International (QPI) and British energy firm Centrica PLC have signed energy investment deals on Monday that aim to capitalise in a range of new or existing oil and gas projects, including ventures in LNG, gas storage and gas-powered turbines.

Both companies did not say how much their partnership will cost or how soon it will be completed.

In April, the two companies signed a deal wherein QPI will supply Centrica with up to 2.4 million tons of LNG annually over three years worth $3.13 billion.

QPI is the international investment division of state-run Qatar Petroleum, while Centrica is the parent company of British Gas, Britain's biggest household energy supplier.

Qatar, a member of the Organization of the Petroleum Exporting Countries (OPEC), is the biggest supplier of LNG, as well as holds the world's third largest natural gas reserves.

LNG is a super-cooled form of the fuel condensed for transport on hulking supertankers.