Qatar, the world's top exporter of Liquified Natural Gas, is poised to ramp up its production of hydrocarbon, especially of LNG, as energy producers from around the world vie to make up for lost supplies resulting from Russia’s war on Ukraine, according to a report by the Energy Industries Council, one of the world’s largest energy trade associations.
Qatar aims to bolster its position as a key contributor to the energy transition, supported by its abundant reserves of natural gas, the report said. The Arab Gulf state currently has 18 projects under development across the oil and gas sectors, with an estimated capital expenditure (CAPEX) of $60.2 billion.
According to the report, Qatar aims to substantially increase its liquefied natural gas (LNG) production from 77 million metric tonnes per annum (mtpa) to 126 million mtpa by 2027. Multiple contracts worth billions of dollars have already been awarded by QatarEnergy, the state-owned energy company, for the construction and expansion of LNG facilities. Qatar's ambitious LNG expansion plans reinforce its position as the world's largest LNG exporter.
The downstream sector is also set to see significant growth through the Ras Laffan Petrochemical Project (RLPP). QatarEnergy, in partnership with Chevron Phillips, has made a final investment decision (FID) to advance this project.
Despite a decline in hydrocarbon revenues in 2020 due to the COVID-19 pandemic, Qatar's oil and gas industry has remained highly active and is projected to play a crucial role in the country's economy for the foreseeable future. Approximately 80% of Qatar's LNG is directed towards Asian markets, catering to the region's growing demand.
The report also touched on Qatar’s efforts to strengthen its presence in the renewable energy sector. The country aims, as part its Sustainability Strategy, to generate 5 gigawatts (GW) of solar power by 2035. To achieve this goal, QatarEnergy has awarded engineering, procurement, and construction (EPC) contracts for two solar projects in Ras Laffan and Mesaieed.
Qatar has set targets to reduce emissions across all sectors by 25% by 2030. QatarEnergy's Sustainability Strategy further aims to decrease carbon intensity by 25% in upstream operations and 35% in LNG facilities by 2035. The company also plans to implement carbon capture and storage technology to capture over 11 million tonnes of CO2 annually by 2035.
Commenting on the report, its author Faiz Halim, an EIC Analyst, said, "Qatar's energy sectors are poised for remarkable growth as the country harnesses its natural gas reserves and invests in sustainable solutions. This creates ample opportunities as well as a sense of certainty for supply chain companies looking to add value to Qatar’s energy sector.”