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Qatar Government is Planning to Merge Qatargas and RasGas

DOHA: Qatar, the world largest LNG producer and exporter is planning to merge its two state-owned Qatargas and RasGas company into a unique global LNG operator. This merger would provide competitive advantage to Qatar in LNG business and will aid cost reduction, as both companies are operating in the same business segment. Merger of the companies will be completed by the end-2017. Qatargas is the largest LNG-producing company in the world, with an annual output capacity of 42 MMTPA whereas RasGas has a production capacity of about 37 MMTPA. Rasgas is a 70:30 percent joint venture between Qatar Petroleum and Exxon Mobil.


TechSci research depicts that the increasing merger and acquisition of LNG producers would drive the demand of LNG market globally. Growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years. Increasing urbanization, growing industrialization and rising number of projects related to power, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016 - 2025.


According to released report of TechSci Research Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years.

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