Qatar Says Will Increase LNG Production Capacity

Qatar Says Will Increase LNG Production CapacityQatar Says Will Increase LNG Production Capacity

Qatar Petroleum plans to boost gas production from its giant North Field, which it shares with Iran, by 20% after new gas development, the company's chief executive said on Tuesday, despite sanctions imposed on the Persian Gulf Arab state by its neighbors.

In April, Qatar lifted a self-imposed ban on development of North Field, the world's biggest natural gas field, and announced a new project to develop its southern section, increasing output in five to seven years, Reuters reported.

"That new project will raise Qatar's total liquefied natural gas production capacity by 30% to 100 million tons from 77 million tons per year," Qatar Petroleum's CEO Saad al-Kaabi told a news conference in Doha.

Global LNG demand was 265 million tons in 2016, according to Royal Dutch Shell's annual LNG outlook.

"After further assessment, we have decided that the best way to develop this huge project is by dedicating it to the production and export of liquefied natural gas," Kaabi said.

"We have decided that the best option would be to double the size of the project to 4 billion cubic feet of gas per day ... This project will strengthen our position as the world's largest LNG producer and exporter."

Kaabi said QP will need to build new LNG trains to meet the expansion in capacity.

"We will be looking for international partners to join us," he said, declining to say when a tender would be issued.

The announcement comes a day after France's Total signed an agreement with Iran to develop its part of the shared offshore gas field that is called the South Pars in Iran's territory.

Kaabi said there is no cooperation with Iran on any project in the North Field, but the countries have a joint committee that meets every year to discuss development of the field.

"We know what they [the Iranians] are doing and they know what we are doing," he said. Iran has made a rapid rise in production from South Pars a top priority.


Add new comment

Read our comment policy before posting your viewpoints