The outbreak forced Qatar to switch to oil and gas

Qatar said on the evening of February 12 that it is one of the world's largest exporters of liquefied natural gas (LNG) and is working with Chinese importers to rearrange or divert some oil and gas cargo to the world's second largest LNG importer during the outbreak of the virus. "All relevant Qatar energy companies have worked closely with their Chinese partners to assist in identifying and assessing potential areas of support, and are actively involved in resolving and rescheduling Qatar's energy product delivery requirements," Qatar energy minister Saad al kaabi said in a statement. Al kaabi is also the chief executive of the state-owned company Qatar Petroleum, which exports huge natural gas resources to the small Gulf country. Even before Chinese importers began to impose force majeure on LNG delivery, LNG prices had reached the lowest level in a decade due to warmer winter weather in many parts of Asia, the booming supply of new LNG, especially from the United States and Australia, and the slowing growth of Chinese imports. According to industry sources, spot LNG prices in Asia fell to a record low last week, below $3 per million BTU, down $0.85 from a week ago, as some Chinese importers announced force majeure in spot purchases. Meanwhile, the outbreak of the coronavirus prompted analysts to lower their estimates of China's gas demand growth this year, warning of a knock on effect on the global LNG market. The outbreak has also suppressed China's already slowing natural gas demand growth. Fitch Ratings said on February 11 that China's lower LNG imports could put huge pressure on the gas markets in Europe and Asia. "This could significantly delay the expected balance of supply and demand on February 11 in 2020," the rating agency added