Qatar, one of the leading oil shipping countries competing with the United States and Australia, plans to increase its production of liquefied natural gas (LNG) amidst increasing demand and a halt in growth projects from its key competitor, the United States.
Qatar’s Energy Minister Saad Sherida Al-Kaabi announced on the 25th (local time) that they plan to develop new projects of 16 million tons annually within the next 10 years, increasing the annual LNG production capacity to 142 million tons by 2030.
Qatar has already signed ongoing contracts to sell its expanded volume of 126 million tons, including a 27-year agreement with Chinese petrochemical and European companies such as Eni SpA, TotalEnergies, and Shell.
With this expansion, Qatar is expected to secure a dominant long-term role in global exports.
Al-Kaabi said, “This expansion follows the discovery of a new gas reserve of 250 trillion cubic feet in the North Field, with the total reserves amounting to about 2 quadrillion,” and added, “We are still evaluating the new oil wells in the North Field and will produce more oil wells if there are additional gas reserves.”
The United States temporarily halted new LNG export permits in January, following claims that natural gas is a less emitting alternative to coal or oil and can supplement the increasing adoption of renewable resources, as it investigated the impact of increasing shipments on climate change, economy, and national security.
According to Amos Hochstein, White House Advisor for Energy, the approval suspension is expected to last up to 14 months.
Meanwhile, Al-Kaabi said that a global gas shortage is expected despite the new projects.
Al-Kaabi said, “Most of the demand is likely to come from Asia, and while the growth rate will slow down, Europe will continue to use gas for a long time.”
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