Editor’s Note: This column is part of a regular series by industry veteran Brad Hitch for NGI’s LNG Insight dedicated to addressing the complexities of the global natural gas market.

After several years of chronically tight LNG markets, there was optimism among LNG buyers at the start of 2011. It seemed like the tables were turning in the favor of downstream buyers that had invested heavily in import infrastructure only to see terminals underutilized. 

The biggest fundamental driver in the seemingly imminent rebalancing was the large amount of new liquefied natural gas coming from Qatar. The LNG market had absorbed a great deal of new Qatari production in 2009 and 2010 – over 37 billion cubic meters (Bcm) more in 2010 than in 2008 – but it was also staring down the...