TEHRAN, Feb. 24 (Shana) – Russia and Qatar are in competition over gas market share while a similar rivalry has been underway among OPEC member countries which has grabbed the better part of the energy market analysts.
Moscow and Doha seem to have adopted the strategy of maintaining their market share through every possible means rather than production reduction and price rise. They are in a similar condition compared to Riyadh in the oil market.
Similarly, Qatar is making efforts to maintain and increase its current share of the LNG market. Qatar’s imposing of limitation on LNG consignment destinations and binding gas prices to oil prices are negative points in the eyes of buyers who are insisting on their removals.
If the price war in Europe breaks out, gas prices in Europe will plunge to below 4 dollars per m/btu which will be far from 2.5 dollar per m/btu to substitute coal for Europe’s power plant sector.