Qatar Seeks to Retain Its LNG Crown Despite Saudi-Led Boycott

While Gulf Sheikh could soon move to second place behind Australia as the main fuel supplier, it is ready to retain first place in the next seven years after Qatar Petroleum has said it would increase its production by 30% .

Such a rise would exceed Australia’s planned enlargement and strengthen Qatar’s role as a leading global supplier – even in the context of a regional conflict and a commercial boycott by a coalition country Arabia.

Qatar’s message to the rest of the world is LNG, “We are going to take a large part of the incremental market,” Jonathan Stern, president and chief scientist of the Natural Gas Research Program at the Institute of Oxford Energy Studies said by phone.

Qatar is also releasing the glove to Saudi Arabia, the world’s largest oil exporter. “Basically what it says,” Let’s promote LNG to replace oil, “he said. This is a very divisive subject to say. ”

Qatar aims to produce 100 million tonnes of LNG, or about 40 percent of the world’s supply last year, from its current level of 77 million tonnes, Saar Sherida Al Kaabi, the chief executive of Doha, said on Tuesday.

Australia, which spent $ 200 billion to build LNG export plants, may be superior to Qatar as the largest issuer next year but lost its leadership in the middle of the next decade given the latest Qatar plans, according to Financial data Bloomberg New Energy.

The United States, the largest gas producer in the world thanks to its shale boom, is likely to remain in the third LNG supplier and will enforce if it adds plants beyond those already approved for construction, according to BNEF .

Australia could increase output to 94.3 million tonnes by 2030 if it adds new projects, according to BNEF. However, domestic fuel shortages may limit Pacific nation exports.

Qatar Petroleum 4 billion cubic feet per day its dual objective of production capacity in a new project in the North Field, Qatar section of the largest natural gas field in the world, said Al Kaabi. Demand for liquefied gas is increasing faster than oil, he said. QP’s plan to stimulate North Field production came a day after Iran signed an agreement with Total SA to expand its stake in the same deposit.

“LNG supplies are now plentiful, and there are many projects under development, but the growth in expected demand is very important,” said Al Kaabi. “All studies show that between 2021 and 2024, there will be a shortage of gas due to increased demand. Therefore, the start up of our project will be between 2022 and 2024, period in which there will be a demand market.”

Stimulating gas production alone is not enough to rise to the regional crisis, said Emma Richards, an oil and gas analyst at the Body Mass Index Research. “Qatar is not declining,” she said from London. “For the same reason, they did nothing to try to provoke others and try to make it worse than it already is.”

The Sheikh stops natural gas shipments to the neighbors of the UAE, said Al Kaabi, although U.A.E. It is one of the nations that are trying to isolate the smaller state. Neighbor Qatar insist that these links are delicious with Iran. Qatar denies allegations that the coalition is sponsoring terrorism and said the group’s claims were designed to be so difficult that it would reject them.

The U.A.E. Qatar imports gas through a pipeline operated by Dolphin Energy Ltd, which is owned by Mubadala Development Co., SA’s total Abu Dhabi and Total SA and Occidental Petroleum Corp. The link provides gas to the U.A.E. And Oman can send and 3.2 billion cubic feet per day, although it uses only about two-thirds of that capacity.

Qatar Petroleum puts an end to a ban on 12 new projects in the North field, which has allowed the company to assess how the current extraction rate affects the giant tank. Qatar also the largest exporter of helium, continues to sell the gas, sending shipping by sea, Al Kaabi said.

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