Qatar has suffered immense losses in the natural gas industry for the second year. This comes after recent changes in the policies of global LNG producers.
Moody’s has downgraded its outlook for gas companies based in Qatar from a stable rating to a negative one. It has also said that it can also decrease the rating of Qatar Petroleum if the sovereign rating of Qatar falls as well. These changes come as a result of the losses experienced by the oil and gas industry of Qatar.
The decrease took place because the companies are owned by the government. As such, it will be difficult for those companies to get government funding. In turn, this will make it harder for the companies to fulfill their obligations and pay back their debts.
By the end of 2017, it was reported that Ras Gas Company and Qatar Gas, both based in Qatar, had started to introduce job cuts. These cuts had been delayed because of the diplomatic crisis involving Qatar. Originally, they were supposed to take place in June after these two companies were to be merged by Qatar.
There was another incident that made a major impact on the industry. South Hook Group, based in the UK, was the biggest importer of LNG from Qatar. However, it has already announced that it is going to work with another provider. As per reports, the cargo volume to Britain has decreased by 50% since the start of 2018.
According to reports from the West, Qatar is going to face new challenges in the oil and gas industry. It will have to deal with the expiration of the various long-term supply contracts which it managed to win in the past and, that too, on quite favorable terms.