Alcatel-Lucent paves the way for Ukraine’s Kyivstar regards next generation GSM & IP networks with all IP network transformation.

Alcatel-Lucent (ALU) today announced that it has been selected by Kyivstar GSM, the largest operator in Ukraine, to design, install, and maintain a country-wide Metropolitan transmission packet based IP/MPLS network as part of its larger IP network transformation.

Alcatel-Lucent will deliver its next generation solution that will enable Kyivstar to pave the way for a fully converged IP network and support its evolution to possible 3G and LTE networks. With this Alcatel-Lucent-powered all-IP network Kyivstar will also be able to offer innovative IP services such as IPTV and enhanced communications services to both its residential and enterprise customers with maximum quality of service while realizing CAPEX and operational savings due to the efficiencies of IP-based technology.

“We will benefit from Alcatel-Lucent‘s worldwide experience in network transformation and state of the art IP networking technologies to smoothly and rapidly migrate to an all IP infrastructure,” said Alexander Dorofiy, Kyivstar Deputy CTO. “Alcatel-Lucent’s solutions and services give us the business and technology tools we need to compete and to offer subscribers a full scope of converged services.”

“By converging all services over a unified IP-based infrastructure, Kyivstar can build new revenue streams as well as customer loyalty while creating the platform to deploy next generation mobile technologies, such as 3G and LTE, as well as the advanced IP services that run over them,” said Alexander Tikhonov, Head of Alcatel-Lucent business in CIS.

Alcatel-Lucent will supply products from its industry leading Service Router (SR) portfolio including the 7750 SR, 7210 Service Access Switch and the 5620 Service Aware Manager to address the access, aggregation and core network layers. To offer a full end-to-end solution, Alcatel-Lucent will also supply its next generation Enterprise product, the Omni Switch 6250, to deliver residential access and 3G backhauling. Alcatel-Lucent will also provide professional services.

The network transformation will be performed in two phases: phase one will cover the needs of end-users services (HSI, VoIP, IPTV) and up-coming 3G mobile traffic. During the second phase 2G traffic will be gradually moved from SDH to the converged IP network.

Brazilian Finance Minister Guido Mantega

Brazil’s economy grew at an annualised rate of eight percent in the third quarter and the result for the final three months of the year will be roughly equivalent, according to Finance Minister Guido Mantega.

After growing 1.9% in the second quarter, real gross domestic product growth in the third quarter relative to the previous three months came in at 2% or 8% in annualised terms, he said Wednesday at a meeting of the Council for Economic and Social Development.

The minister added that that result has led the government to forecast positive growth for all of 2009. Growth of as much as 5% is expected next year and similar levels should be maintained through at least 2014.

Brazil’s economy experienced average annual growth of 4.2% during the 2003-08 period.

In citing similar figures last month, President Luiz Inacio Lula da Silva said Latin America’s largest economy had not only overcome the global economic crisis but achieved a “Chinese pace” of economic expansion in the third quarter, with annualised growth of close to nine percent.

Mantega said the strong performance of the domestic market allowed the Brazilian economy to bounce back quickly after feeling the effects of the global crisis in late 2008.

He added that capital goods spending and even manufacturing – the sector most affected by the crisis due to a sharp drop in Brazilian exports – are already in full recovery mode.

According to the finance minister, investment in machinery and equipment rose 5.9% month-on-month in October after climbing five percent in September.

“The good news is the recovery in the gross formation of fixed capital. Investment is no longer lacking to guarantee a cycle of future growth,” he said after predicting that investment in 2010 will be 15 percent higher than this year.

Mantega said five% growth in investment is assured just with the public works needed in preparation for the 2014 soccer World Cup and the 2016 Summer Games inRio de Janeiro.

The finance minister also noted state-controlled oil company Petrobras’ plans to exploit massive offshore hydrocarbon reserves in the coming years.

In addition, Mantega announced a new package of economic-stimulus measures. The core of the package is 1.5 billion reais ($870 million) in tax exemptions and reductions similar to those instituted this year to bolster the automotive sector, which ended 2009 with record output and sales.

The government also has decided to completely eliminate different taxes on refineries, petrochemical facilities, fertilizer plants and wind-energy companies and extended until June 30, 2010, tax cuts on manufactured goods.

North Korea’s government has reportedly sparked panic buying by its citizens after it announced plans to redenominate the won.

North Koreans have been given until Sunday to exchange their old currency for the new one, but the government has limited the maximum number of notes that can be converted, according to media reports.

The devaluation, which will see two zeros knocked off the nominal value of banknotes, will wipe out the value of people’s savings.

North Korea informed its citizens and foreign embassies on Monday that it would be redenominating its currency.

The move has reportedly been met with massive discontent, with the Associated Press reporting that North Koreans were burning piles of bank notes in anger.

South Korean media reported that inside the North the announcement led to a sharp drop in external trade and caused sharp increases in prices for essentials such as rice.

Other reports said that North Korea had ordered its border guards to open fire on anyone who crosses its border without permission, and speculated it could be an attempt to thwart defections by people disgruntled over the currency reform.

The Chosun Sinbo, a Japan-based publication with close ties to the North’s leaders, quoted Jo Sung-hyun, the North Korean central banker, as saying people were
changing currency at hundreds of locations.

He defended the government’s move, saying: “The reason for this [renomination] is to promote currency distribution and building a stronger country. Also it will support the rights of the labourers and better their lives,” Jo was quoted as saying.

Jo said the move would strengthen order inside the country and denied it was a move to encroach on the free market system.

The amount each person could exchange was limited to 100,000 won (about $740 at the old official exchange rate).

Analysts have said the move could be a way of clamping down on merchants.

Business people who have acquired cash from outside the official economy could face punishment if they reveal hoarded wealth by converting currency.

Norways Telenor Group launches new operator across India: Uninor launches across seven circles, encompassing 600 million end users.

Telenor’s Indian mobile operation, Uninor, today announced the launch of its mobile services in seven Indian telecom circles, making it the largest single day launch in the telecom history. On the first day of service Uninor will cover a footprint of close to 600 million people.

Uninor services were launched simultaneously in the circles Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West and Bihar (including Jharkhand), making it the widest coverage any operator has launched within India. The launch of Uninor services happens eight months after Telenor Group finalized the transaction with Unitech Group and made the first investment into Uninor on 20 March.

“It has been highly satisfying to witness today’s launch of Uninor services across India. By providing quality mobile services, I strongly believe that Uninor will bring about a significant and positive impact in the daily lives of its customers in India”, said Jon Fredrik Baksaas, CEO and President of the Telenor Group (TELNY).

“Establishing a mobile operation of this scale in record time is truly an impressive achievement. I am confident that Uninor will keep the same high momentum going forward to become a preferred provider of mobile services to the Indian population and a significant mobile operator in the Indian market. The Telenor Group is committed to this operation, and will back Uninor with our capabilities and vast experience from other markets to support a successful entry in India”

“With launch in seven circles and roaming agreements in place for the rest, we have started our service in India on day one as a pan-Indian national operator. This is a proud achievement of a committed and talented team. While our launch today is indeed a milestone in a longer journey to become a significant operator in India, we are delighted to have made such a strong start,” said Stein-Erik Vellan, Managing Director of Uninor.

A model for future telecommunication operations

Uninor has established an organizational model, utilizing the unique extend of infrastructure sharing and large degree of outsourcing services available in India. With extensive use of outsourcing, Uninor has created a fast, flexible and efficient model for future growth.

“The Indian organizational model represents a new and innovative approach to setting up a light and cost-efficient telecom operation”, said Mr. Jon Fredrik Baksaas. “I believe that Uninor’s organizational approach will make them faster and more agile than a traditional mobile operator”.

India, with its population of 1.2 billion people, represents a market with high degree of diversity between the different regions. To cater for different needs, Uninor has established a decentralised and empowered organization with 11 regional hub offices to get closer to their customers. In less than 1 year, Uninor has recruited more than 1800 employees that now are trained, prepared and inspired to meet the Indian customers demand.

“Uninor aims to provide the young ambitious Indian customers with services that help them in their daily life, and support them in fulfilling their ambitions”, said Stein Erik Vellan. “Our regional offices allow us to listen to our customers’ needs, and respond and act differently in each region based on our local presence and knowledge.”

The Uninor launch also represents the largest ever distribution at launch by any operator in India. From the start, Uninor will be retailed at over 210,000 points of sale through close to 1000 exclusive distributors in the seven circles. Uninor services will also be available in 17 exclusive company owned shops and 50 exclusive franchisee shops.

“Ab mera number hai”
Uninor will leverage from Telenor Group’s established marketing and design framework. As in several other markets where the Telenor Group is present, the brand follows Telenor’s brand strategy, combining the global position of the Telenor Group with a distinct local identity. Uninor’s tagline is “Ab mera number hai” or “My time is now”, set to target the young and ambitious individuals.

In Q3 2009 Rosneft’s revenues increased by 19.2% quarter-on-quarter, to USD 13,048 mln.

The increase was due to higher crude oil and petroleum product prices, growth of crude oil production volumes and refinery throughput. In 9M 2009 revenues amounted to USD 32,259 mln, a decrease of 44.6% year-on-year. The decrease was primarily attributable to a drop in average crude oil and product prices.

Rosneft’s EBITDA amounted to USD 3,659 mln in Q3 2009, a 2.4% increase quarter-on-quarter. Moderate EBITDA growth in spite of the strong increase in revenues and steady cost control resulted from growth of the export customs duty, mineral extraction tax and transport tariffs, which together increased by USD 2,050 mln quarter-on-quarter while revenues grew by USD 2,101 mln. Continuing RUB appreciation against the USD was another negative factor for Q3 results. EBITDA was USD 9,551 mln in 9M 2009, 44.1% below the level of 9M 2008.

Net income was USD 1,168 mln in Q3 2009, 27.5% lower quarter-on-quarter. The decline was primarily a result of the effective income tax rate growth from 20% to 37% following the continuing nominal appreciation of the RUB against the USD (the rate for Q3 includes the adjustment for the difference between 20% and effective rate of 12% applied in 1H 2009, as the estimated rate for 2009 grew from 12% to 20%). Increased depreciation, depletion and amortization due to the launch of the Vankor field, growth of interest expense due to the decrease in capitalized interests and creation of reserve for the Russian Federal Antimonopoly Service claims were other main factors of decreased net income.

In 9M 2009 Rosneft continued to decrease its net debt. As of the end of September 2009 net debt was USD 18,862 mln, a decrease of USD 2.4 bln compared to December 31, 2008. The decrease reflects strong free cash flow generation which amounted to USD 2.2 bln in 9M 2009.

In Q3 2009 Rosneft’s daily crude oil output (including production by subsidiaries and share in production by affiliates) increased by 4.1%, to 2,214 th. barrels per day (bpd), from 2,127 th. bpd in Q2 2009. The growth was driven by the launch of commercial production at the Vankor field in July 2009, contributing 104 th. bpd during Q3 2009. Crude oil production at Vankor averaged 148 th. bpd in September and reached 160 th. bpd in October. In Q3 2009 Rosneft produced 12.01 mln tonnes of petroleum products, up 3.1% quarter-on-quarter.

In Q3 2009 Rosneft continued its successful implementation of cost optimization measures. Upstream operating expenses were USD 2.62 per barrel compared with USD 2.51 per barrel in Q2 2009. The increase resulted from the real appreciation of the RUB of 4.6% and launch of commercial production at the Vankor field. Per barrel costs at Vankor were higher than Rosneft’s average as production volumes were low compared to the target capacity of the project. Rosneft management expects these costs to decrease to a level significantly below the average for the Company’s portfolio as Vankor production continues to grow in the next few quarters. Operating expenses of the Company’s refineries were USD 14.6 per tonne in Q3 2009, a decrease of 6.1% quarter-on-quarter, which resulted from decreased volume of turnaround works and optimization of headcount. General and administrative expenses were USD 348 million, 4.9% lower than in Q2 despite appreciation of the RUB against the USD. The decrease resulted from the reduced expenses related to construction activities at Vankor following the launch of Vankor – Purpe pipeline, as well as from reduction in compensation payments and reversal of bad debt allowance.

Commenting on the results, Rosneft’s President Sergey Bogdanchikov said: «Commercial production launch at the Vankor field in Eastern Siberia, Rosneft’s key investment project, was our greatest achievement in Q3 2009. The field was launched on schedule and is performing above expectations allowing us to confirm with confidence our production target for the year. We are also pleased with our success in maintaining industry low operating and SG&A costs. As of today, Q4 also looks to be a strong quarter and we are on track to exceed our plan on all key financial and operating metrics».

Argentina’s economy will lag other countries in the region, expanding between 2% & 2.5% next year and recovery will be “much slower” in the post 2008 crisis than in previous years when the country enjoyed  growth rates of 6% to 7%, according to economist Nouriel Roubini.

Speaking in a teleconference with Buenos Aires, Roubini said Latinamerica’s third largest economy still faces challenges as it weathers the global crisis eight years after its sharp 2001/02 economic meltdown & strongly suggested it should work to normalize relations with creditors such as the Paris Club.

Argentina should also “resolve its confrontation with the International Monetary Fund and accept an economic review by the IMF” he added. Argentina is working to reach a deal with investors who rejected a 2005 restructuring of defaulted debt to clear the way to issue new bonds

Roubini said Argentina’s recovery would be slower because of the tight controls on capital flows & the requirement for more rational fiscal and monetary policies.

“Although economic growth needs a strong fiscal showing, its conditions should be sufficiently under control as to recover the confidence of domestic & foreign investors”, said Roubini. He called for an “efficient control” of capital flows so as to avoid asset bubbles which could lead to spiralling inflation, “already too high”.

To achieve sustained growth, Argentina must increase investments in infrastructure and also taxes, so it can begin lowering the budget stimuli fed out through monetary policy and fiscal aid to several sectors.

Another issue is increasing domestic demand for export produce, granting the economy greater autonomy from the swings of the global economy.

Finally he insisted in greater transparency for the financial system and restabilising links with international multilateral credit organizations, “which will be essential in helping combat inflation and asset bubbles”.

Overall investors should be cautious taking into account that “we are just coming out of global recession, but its effects will be long lasting in the world economy both medium and long term, he concluded.

Ford Motor Company has announced a 5 year plan to finance expansion into the growing Brazilian market.

The plan includes boosting the capacity of it’s existing Camacari facility, which manufactures the Fiesta small car & also upgrading & modernizing the Troller plant that builds utility vehicles, said Jennifer Flake, a spokeswoman, Ford will also invest in infrastructure to bring new models for Brazil, she said.

The auto industry in Brazil, South America’s largest economy, is headed for record sales this year, the country’s automakers association said on Oct. 7. Ford ranks fourth in Brazil, behind Fiat SpA, Volkswagen AG and General Motors Co.

“Ford understands the importance of Brazil and Argentina and they continue to invest in those markets,” Michael Robinet, an analyst at consulting firm CSM Worldwide in Northville, Michigan, said in an interview. “Every automaker is taking Brazil seriously and they should, because it’s a market with an expanding middle class.”

The Camacari factory, in Bahia, northeastern Brazil, will be able to build 300,000 cars annually after the expansion, an increase from 250,000 now, Marcos de Oliveira, chief executive officer of Ford’s Brazilian unit, said Monday.

“This is a very large investment for Ford,” Mark Fields, Ford’s president for the Americas, told reporters at the announcement in Brazil. “We’re investing because we want to continue to grow and to improve our competitiveness.”

Ford has sold 298,134 vehicles in Brazil this year, giving it 9.9% of the market, CSM said. That share is down from 10.2% in 2007 and is less than half of GM’s 20.3%, the firm said.

Third-quarter pre-tax profit in South America declined 49% to 247 million USD as revenue dropped 22% to 2.1 billion USD, Ford said on Nov. 2. The automaker blamed “unfavourable” currency-exchange rates in Brazil and Argentina.

Looking at the Latin-American market from an economic point of view, we can see that there are a number of reports & indicators coming out, particularly from Brazil, Chile & Argentina, that the continent is bouncing back from the global recession a lot quicker than it’s Western counterparts.

Normally with stockpicks, I tend to focus on a single market, rather than a whole region, however, I have been looking at MercadoLibre for the last few weeks & am bullish on it’s prospects going forward.

MercadoLibre (Nasdaq:MELI) is an Argentinian based Spanish-Portugese language  online auction and fixed price marketplace provider across Central & Latin America, including key markets such as Brazil, Argentina, and Mexico. It also runs a payments processing system called MercadoPago that is similar to Paypal. Enjoying a near monopoly in this marketplace, it also operates as e-Bay’s exclusive partner for the region, with e-Bay holding an 18.3% stake in the company. Unlike it’s erstwhile partner, MELI has not become sidetracked from it’s strategy & is a pure e-commerce play.

This year the  has performed very well, running from a low of $12.51 up to todays price of $38.12, an eye watering $203% return for those lucky enough to buy & hold for the period. Looking at Q2 2009 earnings against same year 2008, it is obvious that MELI is bucking the global trend, as it has grown organic revenues by 19% & increased it’s net income by 127%, pretty spectacular figures & one of the main reasons that I am looking at this stock with interest. The following excerpt from MELI’s earnings review points to more bullish figures.

For me the main reason that I am interested in MELI is that in the countries in which it operates, broadband penetration has been traditionally much lower than in developed countries, but has been accelerating of late & is set to boom over the next 5 years.

According to MarketResearch.com Broadband penetration in Latin America and the Caribbean was about 4.9% in early 2009, well below the world average of 6.1%, however, competition has been increasing and prices have been dropping in most countries. Given the region’s general economic indicators, there remains ample space for expansion.

Looking at the three largest markets, we can see that a large internet subscription audiences exist; Brazil 29.3% (67.5M), Mexico enjoys 21.3% (27.4M) & Argentina 11.6% (20m) respectively, as of June this year. (source Internet Statistics). A recent survey by the Broadband Forum revealed that in the Latin America heads up the broadband growth rankings globally, with a 31.4% increase in broadband subscriptions this year. With Brazil alone adding 10 million users this year, making them the 9th largest broadband community in the world.

“I believe this year has shown that broadband expansion is not limited to the top industrialized countries, but is a key factor in assisting developing nations to gain a foothold in today’s tough market,” said George Dobrowski, Chairman
and President of the Broadband Forum.

As we have seen, the region has been faring better economically of late & with retail investors looking to developing markets for better returns, technology stocks should see greater capital inflows. From my research, it would seem that investors are now looking to South America for new opportunities & a stock with MELI’s past performance is very attractive indeed.

The cooling of the Romanian economy &  near saturation of the market have resulted in lower earnings for the country’s telecommunications sector. There are signs that competition is about to increase the pressure on sector players even further.

Romania’s GDP fell 6.2% in the first quarter of 2009 compared to the same period in 2008, with household spending down by 12.3%, according to figures released by the National Institute of Statistics on June 9. As with other sectors in the economy, this slowdown has hit the telecoms sector.

All of Romania’s main mobile phone service providers have reported reduced earnings so far this year, with market leader Orange Romania, which has some 10m subscribers, announcing revenues of $366m for the first three months of this year, well down on the four-quarter average of $453m in 2008.

Vodafone Romania has also seen reduced incomes, announcing profits of $731m for the fiscal year ending March 31, down 3.5% on the preceding 12 months. This drop in profits was despite adding almost 670,000 new subscribers over the year, the 7.5% increase taking its customer base to 9.58m.

An additional factor for lower earnings is the highly congested nature of the mobile phone market. Romania has one of the highest penetration rates in the world, 133% as of the end of 2008, according to a report by the National Communications Administration and Regulatory Authority (ANCOM) issued in early June.

With five service providers currently in the market, competition is fierce. Though there was a 44% increase in the amount of mobile minute usage last year, with users racking up 30bn minutes of conversation, along with 4bn text messages sent, up 36.5% on 2007, campaigns by networks to retain customer loyalty reduced earnings, ANCOM said.

According to ANCOM’s president, Catalin Marinescu, it will not be until after summer when the full impact of the economic downturn on the telecoms sector will be felt. “The effect of the current economic climate on telecoms in Romania is to be evaluated only in the autumn of this year, when we have data on the first half” he said in early June  “We expect stagnation in some sectors and maybe even drops, but we will certainly have an increase in broadband penetration.”

Though profit margins may have shrunk and the market is approaching saturation point, there is still some overseas interest in the sector, with Turkish fixed-line service provider Turk Telekom considering buying into the market. In mid-May, Hakam Kanafani, the development director for Oger Telecom, the Dubai-based majority shareholder of the Turkish firm, said Turk Telekom had built up a $1bn acquisitions fund, some of which could be used to gain a stake in an existing Romanian telecoms operator.

“I’m not sure whether it will be spent or not but these are sort of opportunities we’re looking at in 2009 and 2010,” Kanafani said in an interview with the Reuters news agency.

It is not the first time the Turkish firm has floated the idea of expanding into the Romanian market. In mid-2007, Turk Telekom’s chief executive officer, Paul Donay, was quoted by local media as saying the company was examining fixed and mobile telephone business opportunities in Romania, along with other countries in Central Europe, though nothing came of the proposal at the time.

Interestingly, just as Turk Telekom was again talking up the possibility of buying into Romania, its parent company Oger was finalising a deal to sell its Romanian mobile service provider Telemobil, the owner of Zapp, to Greek telco Cosmote and its subsidiary Cosmote Romania.

The $277m buyout is a strategic move by Cosmote, which is the only mobile service provider in the Romanian market that does not have a 3G licence that would allow it to offer internet access to its customers. Cosmote missed out on winning a 3G licence in the last round of tenders and was not expected to have another chance to obtain one before 2011 at the earliest.

By acquiring Zapp’s operations, which run on a CDMA platform, the company will put itself on an equal footing with the two market leaders in the domestic market, Orange Romania and Vodafone Romania, along with the relatively small RCS&RDS. Currently, neither Oger or Cosmote are publicly commenting on the sale, though industry analysts expect it to be sealed in the second half of this year.

Equipped with fast next-generation data services, Cosmote is expected to step up efforts to rein in the big subscriber gap between itself and Orange and Vodafone, though with an estimated 6m registered customers it has a long way to go before Romania’s mobile phone sector becomes a real three-horse race

Though international oil and gas prices have fallen steeply resulting in the economies of many countries in the Middle East facing negative growth and large-scale cut backs in energy projects, Qatar stands out as an exception.

Though the country’s hydrocarbons sector and the economy it underpins will not enjoy the same heady rates of growth seen over the past few years – with GDP estimated to have expanded by 18% in 2008 – predictions suggest that the economy will grow by around 9% this year.

Much of this growth will come through Qatar’s increased gas exports. With proven reserves of 25trn cu metres and production capacity expected to reach 77m tonnes by the end of the decade, Qatar has positioned itself to be the world’s leading supplier of liquid natural gas (LNG) for the foreseeable future.

Though gas prices have dropped over the past year, this is expected to have less impact on Qatar’s overall economy than falling oil prices on some of its neighbours. This is due to the fact that many of the export contracts it has with overseas clients are long-term deals, rather than the more usual spot contracts in the oil industry.

Another factor in Qatar’s favour is its ongoing programme of increasing output, meaning it can maintain earning levels even if prices fall simply by selling more gas at a lower price.

There have been some claims that the international LNG market could see a glut this year, as the global recession pushes down demand and production increases. With Russia looking to ramp up output and break into the Asian market – a traditional stronghold of Qatar – as well as other gas production projects due to start this year in Indonesia and Yemen, competition is increasing.

Though there could be a brief period of oversupply, Faisal Al Suwaidi, the chief executive of Qatar Gas, believes the recovery of the global economy will bring about a balance.

“I would be lying if I said I wasn’t worried about the short-term outlook, but in the longer term the world will need this gas,” Al Suwaidi said in an interview with British daily The Times on April 6.

Though there may be concerns over pricing levels and oversupply, Qatar can look to the future with optimism, with clients lining up to secure imports. An increasing number of these new customers are in Europe, as the continent becomes increasingly disenchanted with Moscow as its main supplier, and Qatar is set to be one of the main benefactors from the recurring spat between Russia and Ukraine, which has seen pipelines running across Ukrainian territory into Europe closed twice in two years.

On April 16, Qatar Gas signed a 20-year agreement, due to come into force in 2014, to supply Poland’s state-owned gas company Polskie Gornictwo Naftowe i Gazownictwo with 1.4bn cu metres of LNG annually, equivalent to 10% of present consumption. Currently, Poland imports around one-quarter of its gas needs from Russia and like many European countries saw supplies disrupted in January after Moscow turned off the taps during its latest pricing dispute with Kiev.

Bulgaria, another country that experienced supply cuts in January, could become the latest in the line of clients for Qatari gas imports, the subject being discussed during talks held in mid-April between Qatar’s ruler, Sheikh Hamad bin Khalifa Al Thani, and Bulgarian President Georgi Parvanov.

Sofia also suggested the proposal of building an LNG terminal on Greece’s Aegean coast to allow shipped gas to be unloaded before being piped to Bulgaria itself and other customers across Europe, a move that would further expand Qatar’s export reach.

Established customers too are looking beyond the current economic crisis and are seeking to secure additional supplies. One of these is India, which Qatar is already contracted to supply 7.5m tonnes annually. On April 20, the Qatari deputy prime minister and minister of energy and industry, Abdullah bin Hamad Al Attiyah, told local media that India was seeking to increase its imports to feed a new regasification terminal under construction in Kochi.

Al Attiyah stated that one of the reasons India was looking to Qatar to meet its additional needs was down to the country’s reputation for reliability.

“Since we began supplying to Petronet, there was no disruption in our LNG cargoes to India. We remain committed to being a reliable supplier and supplier of choice,” he said.

It is this reliability as a supplier that is increasingly making Qatar the preferred choice for energy-hungry importers. With the country not using gas as a weapon of diplomacy as Russia has done; not being subject to sanctions or political concerns as is the case with Iran; and putting conditions on sales that Algeria, which is calling for the right to sell directly to consumers in some European markets, has done, Qatar has earned its reputation as a dependable business partner. It is this standing, along with reserves estimated to be able to maintain production at proposed levels for 100 years, that will aid the country’s economic growth.