Related Articles
An LNG tanker arriving in Singapore
Forward article link
Share PDF with colleagues

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

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
European chemicals sector rises to climate challenge
1 December 2021
Industry responds to EU’s ‘Fit for 55’ package with new business models and alliances with other sectors, says PwC’s global head of chemicals
Energy transitions for a sustainable future
1 December 2021
The challenge of meeting global energy demand while hitting net-zero targets will be at the core of this year’s World Petroleum Congress
Indian government seeks energy investors
1 December 2021
Delhi is looking to the Mideast for energy investment, oil ministry secretary Tarun Kapoor tells Petroleum Economist
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video