LNG expansion will positively affect Qatar’s economic growth
19/09/21
Qatar’s plans to expand the Liquefied Natural Gas (LNG) capabilities and capacities promise a major boost to the growth of the national economy. The expansion results in a projected surplus between 2021 and 2027.
It is expected that the North Field LNG expansion and other projects will positively impact the rest of the national economy and consequently Qatar’s Gross Domestic Product (GDP). A growth of the non-oil GDP is projected between 2022 and 2027. By 2027, Qatar’s economy is expected to double in size to QAR 1,095 trillion (USD 300 billion) from the QAR 530 billion (USD 145 billion) in 2020. It is estimated that the fiscal balance will average at 2% of the GDP between 2021 and 2027.
The two-phased NFE project has the potential of increasing Qatar's production capacity by 64 percent to 126 million tons per year in 2027.
The first phase of the NFE project is expected to increase the production capacity by 42 percent to 110 million tons per year by 2025. Four units of LNG trains with a capacity of 8 million tons per year each are scheduled to be operational at three-to-six months intervals.
The second phase of the NFE project is expected to increase the production capacity by 22 percent to 126 million tons per year by 2027. Two units of LNG trains with a capacity of 8 million tons per year each are scheduled to be operational at three-to-six months intervals.
The plans of Qatar Petroleum (including the NFE project) will cost QAR 157 billion (USD 43 billion) accounting for 24 percent of the GDP in 2021.
There are several initiatives that are being developed and implemented to enrich the hydrocarbon sector of Qatar and to make it more environmentally friendly.
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