Qatar to be top LNG producer for at least two decades

02/03/21

Qatar aims to be the world’s biggest producer of liquefied natural gas (LNG) for at least the next two decades. The country will spend billions to develop the North Field and to increase the capacity by more than 50% to 126 million tons per year.

The country is already a major supplier of LNG and is looking at rising demand as the world transitions from oil and coal to cleaner energy.

State owned oil and gas producer Qatar Petroleum (QP), took a final decision on the North Field expansion project and it is likely to be the only one in the world to pass this milestone in 2021.

The country will be able to produce LNG from the first phase of the expansion so cheaply that it will be viable even if oil prices fall below USD 20.0 (QAR 73.0) per barrel. It is relevant since most LNG supply agreements are based on the price of crude oil.

A lack of demand due to the coronavirus saw oil prices collapse in 2020. However, prices have rebounded by more than 60% since the start of November 2020. Currently, the price for crude oil is around USD 65.0 (QAR 240.0) per barrel.

With an eye on the future, QP has booked capacity at units that turn LNG back into gas in the United Kingdom, Belgium and France. QP is also looking to increase its 70% stake in Great Britain’s largest LNG import terminal by investing in more regasification plants in the country.

The North Field expansion project will incorporate several environmentally friendly features with the aim and intention to significantly lower CO2 emissions and increase carbon capture. Other measures will include the use of compressed natural gas as fuel and the use of solar power to provide electricity.

Please click on the link and reach out to learn more about the North Field expansion project and the opportunities and possibilities related to it as well as Business Start Up Qatar.

Other News

BSUQ News 115 - Thumb

Qatar is among top countries for entrepreneurs

The State of Qatar is ranking ninth on the list of top countries for entrepreneurs according to the National Entrepreneurial Context Index (NECI)...

Read more
BSUQ News 114 - Thumb

Qatar remains a promising market in the region

The State of Qatar is a very promising investment market according to a recent report by The Investment Promotion Agency Qatar (IPA Qatar).

The report “Invest Qatar Annual Report 2021”...

Read more
BSUQ News 1 - 16 Jan 22 - Thumb

Qatar’s trade surplus up 171 percent in November

Qatar’s foreign merchandise trade balance increased by 171 percent in November 2021 compared to November 2020 according to the latest figures released by the Planning and Statistics Authority...

Read more
BSUQ News 113 - Thumb

SCDL announces new tenders for 2022 FIFA World Cup

A webinar hosted by the Qatar Financial Centre (QFC) and titled “Exploring Tender Opportunities at the Supreme Committee for Delivery & Legacy” discussed the potential for businesses and projects related...

Read more
BSUQ News 112 - Thumb

Qatar to award a number of large-scale projects in 2021

The State of Qatar is expected to invest more than QAR 113.15 billion (USD 31 billion) into large-scale projects this year. The estimation is in line with the country’s QAR 47.45 billion (USD 13 billion)...

Read more
BSUQ News 111 - Thumb

LNG expansion will positively affect Qatar’s economic growth

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...

Read more
BSUQ News 110 - Thumb

Qatar’s economic performance improved in first quarter

Qatar’s budget for the first quarter of this year was exceeded by QAR 200 million (USD 54.8 million). The surplus is partly related to the most recent increase in the oil prices, the level of budgetary...

Read more
BSUQ News 109 - Thumb

Investments in digital sector at all-time high in Qatar

Qatar has witnessed a lot of investment in the digital sector in line with the digital transformation of the country and the establishment of a knowledge-based economy as set out in the [Qatar National...

Read more

Page Break