LONDON (Reuters) - The West's three biggest energy corporations are lobbying Qatar to take part in a huge expansion of its gas production, handing Doha an unintended but timely boost in its bitter dispute with Gulf Arab neighbors.
The chief executives of ExxonMobil(XOM.N), Royal Dutch Shell (RDSa.L) and France's Total (TOTF.PA) all met the emir, Sheikh Tamim bin Hamad al-Thani, in Qatar before it announced a plan on Tuesday to raise output of liquefied natural gas (LNG) by 30 percent. Company and industry sources told Reuters that the CEOs had expressed interest in helping Qatar with its ambition to produce 100 million tonnes of LNG annually - equivalent to a third of current global supplies - in the next five to seven years.
Qatar, the world's largest LNG supplier and second biggest gas exporter after Russia, has some of the lowest production costs. The plan was seen as an opening shot in a price war as Doha tries to defend its market share, especially against supplies from U.S. shale deposits where costs are higher.
LNG Price at posting:
61.8¢ Sentiment: Buy Disclosure: Held