Oil industry’s dash for gas comes with risks

There are early signs of a new wave of investment in liquefied natural gas, oil’s cleaner cousin. The industry is trumpeting a new capital discipline, but it might not be enough to stop another glut.

This week, Qatar signed off on a 40% expansion of its LNG production capacity. The petrostate’s North Field East project, due to complete in 2026, ranks as the single largest investment in the fuel ever approved.

Even after a traumatic 2020, the wider industry may find it hard to resist competitive responses. LNG—the liquefied, shippable version of the gas that heats homes and generates power across the world—plays a key role in the strategies of all big five oil-and-gas “supermajors.” It has better growth prospects and emits fewer greenhouse gases than oil, yet offers a more familiar business model than renewable energy.