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Qatar Petroleum
Qatar:
global gas giant Image Credit : Adobe Stock
Qatar Petroleum is looking to raise output from the mighty North Field as the world demands more natural gas to ride through the coming energy transition. The gas giant is up for the challenge, as Martin Clark reports. ATAR’S GAS RICHES have, in just a few short decades, transformed this tiny Gulf state into a global energy powerhouse.While the shift to alternative fuels and away from hydrocarbons poses great challenges for all countries longterm, it seems certain that Qatari gas will help the world ride through the transition. That puts national champion Qatar Petroleum (QP) right in the hot seat. The company currently supplies roughly one in every five cargoes of liquefied natural gas (LNG) shipped around the world – and demand is not, it seems, easing up. In recent weeks and months, QP has signed a flurry of new contracts with buyers for its gas, predominantly in Asia. These are also long-term deals: most recently, a 20-year contract to supply two million tons of LNG annually to Korea Gas Corporation (Kogas), commencing in January 2025. It means a flow of gas for the Korean energy major right into the middle of the century. Other contracts secured within recent months include buyers from Pakistan, China, Bangladesh and Taiwan.
Q
North Field expansion As a result, QP continues to explore its supply options, with huge plans for growth. In February, it signed a contract for the first phase of the North Field LNG expansion project, which aims to boost Qatar’s LNG output to 110mn tonnes per annum (mtpa) by 2027 from 77 mtpa currently. A joint venture of Technic and Chiyoda landed the contract for the major offshore engineering, procurement and construction expansion project, known as North Field East. The total cost of the project is estimated at US$28.7bn. A second phase, known as North
Qatar Petroleum supplies around one in five cargoes of LNG shipped around the world.
QP has signed a flurry of new contracts with buyers for its gas.” Field South, is expected to lift production capacity further to 126 mtpa by 2027. QP’s chief executive, Saad Al-Kaabi, who is also Qatar’s Energy Minister, has said that up to a 30% stake in the project’s first phase will be offered to international firms. By June, QP had received offers for double the equity
available from potential partners in the project. ExxonMobil, Total, Shell and ConocoPhillips are long-standing partners in Qatar’s existing LNG plants. Al-Kaabi also hinted that there could be further expansion beyond the 126 mtpa. “I would say ’stay tuned’,” he said in February, when announcing the initial expansion.
International ambitions At the same time, QP is also making great strides in raising its international upstream profile, becoming increasingly active in overseas acquisitions. This could potentially
Qatar gas production and LNG exports, bn cubic metres Gas production LNG exports
2015
2016
2017
2018
2019
2020
% of world total
% change 2010-2020
175.8 105.6
174.5 107.3
170.5 103.6
169.1 104.9
172.1 105.8
171.3 106.1
4.4% 21.7%
39.2% 36.4%
Source: BP Statistical Review of World Energy, 2021
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Issue 5 2021
