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 as
Also in this section
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy