Venture Global ready to help meet LNG shortfall as Qatar halts output

By Curtis Williams

HOUSTON, March 2 (Reuters) - Venture Global has the biggest amount of LNG cargoes in the world that are not contracted and is ready to help stabilize the global markets as Qatar halts production following attacks from Iran, the company's CEO Mike Sabel said on Monday.

Qatari LNG production is equivalent to about 20% of global supply and plays a major role in balancing both Asian and European markets' demand for the fuel.

State-owned QatarEnergy, 82% of whose clients are Asian, was set to declare force majeure on its LNG shipments after Iranian drone attacks on facilities in the sprawling Ras Laffan complex, according to a source with knowledge of the matter. The complex hosts Qatar’s gas trains — massive processing units that supercool natural gas into liquid form for export by ship.

The markets have not yet reflected what the price of LNG will be following Qatar's announcement, and with Europe still in winter it is a challenging time, Sabel told an earnings call on Monday.

The higher LNG prices will help Venture Global's margin but the company believes low long term LNG prices are desired to increase demand, Sabel said.