To be the largest is one thing, but to be flexible is another - Richard Uchrin

Being the largest - According to #Reuters, QatarEnergy CEO and state minister for energy Saad al-Kaabi said on October 5, 2022, that his company will become the world's largest trader of liquefied natural gas (#LNG) over the next 5-10 years, a position that is currently held by #Shell.

When Qatar Petroleum became the largest LNG producer, it branded natural gas as the "cleanest burning fossil fuel." Later other producers also significantly increased their capacities, the market changed, and the spot market developed. The renewable energy driven transition forced the industry to reposition #naturalgas as a "bridge fuel."

Being flexible - The New Kid on The Block, U.S., advocated something very dear to major international market players: flexibility, optionality, and a new benchmark for pricing. These were music to the ears of some companies looking to break away from the mainstream and later use them as leverage in contract renegotiations. The U.S. "startup model" was pursued by likable pitches, forcing "allies" to abandon Russian sources, intrigues, and hard repression, if needed. New narratives and new rules were created, which resulted in immediate access to a market that was built and financed by other countries for decades.?

In 2016, just a few weeks after the FIRST U.S. LNG export shipment, The Brooking Doha Center held an event with Amos J. Hochstein, special envoy and coordinator for international energy affairs at the U.S. Department of State; and H.E. Abdullah bin Hamad al-Attiyah, chairman of Abdullah bin Hamad al-Attiyah International Foundation for Energy & Sustainable Development.?Amos Hochstein explained: "We are partners. There is no doubt that the role and the terms of the relationship when it comes to energy have changed because we are not the consumer that we were, but we are partners."

One U.S. export shipment vs. Thousands of Qatari shipments - "We are partners." YouTube video

The Right Time - Inflation, demand disruption, recession, regulated contract terms, and price caps, all negatively influence longer-term predictability. There are no two similar opportunities on the market. The choice between being reliable and opportunistic is a difficult one to make. Being a trusted and reliable supplier is an important differentiating factor in the market. Balancing between maintaining such a legacy and acting as an agile spot market player is a fine art. There are always ups and downs in the market, no matter how successful the company is. Perhaps, confidence and being in control are the two main factors, which allow adjusting to the market as it evolves.

The Right Place - Some industry sectors will shrink and consolidate, while others will disappear, so the choices and strategies for client differentiation in the market will become more important than ever. The European market is hot but not an easy one. Certainly, it is huge and there are vacancies; nevertheless, it shows severe symptoms of distrust. Entire industries, such as fertilizer or metallurgy are in serious trouble, and some appear considering to move production elsewhere. The political mood became quite unpredictable, particularly since price and contract T&Cs are not everything. There is also a distinction between "bad gas" and "good gas". Make no mistake, being "good" is not so easy anymore. It depends on what a country or a company did or didn't do, what it does and doesn't do, and what it will and won't do. In other words, it is all about being liked or not being liked, and being useful or not being useful at any point in time.

The mentioned 5-10 years to become the world's largest LNG trader is a reasonable period. Still, none of the market leaders are willing to give up their position, and competition is fierce, so taking the lead shouldn't become a fixation but rather a roadmap direction.

Summing it up with a rephrased Bob Marley quote - The greatness of a company is not in how much wealth it acquires but in its integrity and its ability to affect those around it positively.

Article source: Reuters - "QatarEnergy to be the largest LNG trader over next 5-10 years - minister", By Marwa Rashad and Shadia Nasralla