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Liquids give Qatar LNG negative breakeven – Rystad

Existing Ras Laffan trains could cover costs even if LNG prices went to zero

State-owned Mid-East Gulf gas behemoth Qatar Petroleum’s Qatargas 1 Train 1 has an estimated variable cost of LNG production of just $1.60/mn Btu, according to analysis by consultancy Rystad Energy. But, if pre-tax liquids revenue from associated liquids production is considered, it calculates these costs are offset by oil revenues of c.$2.60/mn Btu. And that brings net costs down to -$1/mn Btu. Qatari production is therefore in the money even if LNG prices moved to zero or even into slightly negative territory. In an increasingly flexible global market, such a scenario is unlikely. But the UK NBP gas market, for example, has briefly experienced negative pricing previously, when North Sea a



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