Qatar has faced no obstacles in securing long-term LNG (liquefied natural gas) contracts and will sign more deals this year, the CEO of Qatar Energy and Minister of State for Energy, Saad al-Kaabi at an economic forum.
LNG contracts ensure 25 million tons in sales
During his speech, Kaabi highlighted that, in the last 12 months, Qatar has managed to secure 25 million tons of long-term LNG sales and anticipated that new contracts will be added to this figure before the end of the year.
On the other hand, the state company Qatar Energy has been entering into supply agreements with both European and Asian partners. These contracts are intended to cover anticipated production from the massive expansion of the North Field, which is part of the world’s largest natural gas field shared with Iran, known as South Pars on Iranian territory.
In terms of production capacity, Qatar, one of the largest LNG exporters globally, announced in February an additional expansion that will add 16 million metric tons per year to its original plans. Thus, the total production capacity will rise to 142 million tons per year, starting from a previous capacity of 77 million tons.
Qatar evaluates expanding its LNG production
Kaabi expressed considerable optimism about future LNG demand, highlighting that Qatar will continue to evaluate its gas reserves to identify opportunities for additional growth. He also reaffirmed Qatar’s intention to expand its production should technical assessments indicate the possibility of doing so, “If there are more, we will probably do more,” he stated, highlighting the potential for expansion if conditions allow.
Since the start of the conflict in Ukraine in February 2022, competition for LNG has intensified markedly. Europe, in particular, has needed large volumes of this fuel to compensate for the loss of the Russian gas pipeline, which previously accounted for almost 40% of its imports . On Wednesday, Kaabi also noted the growing need for liquefied natural gas in European markets, commenting that the relative stability in Europe was due to two exceptionally warm winters, which allowed gas warehouses to be filled without excessive use.
The expansion of LNG production capacity in Qatar aligns with global efforts to diversify energy sources and reduce dependence on more polluting fossil fuels.
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Source: naturalgasworld
Photo: Shutterstock
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