Following the Ukraine crisis, the global energy market went into turmoil in 2022, illustrated by oil and gas price volatility. With energy investments on the rise, the EIC believes that Qatar is poised to ramp up its production of hydrocarbons, especially LNG, as energy producers from around the world roll up their sleeves to make up for lost supplies resulting from the Ukraine crisis.
Commenting on the report on Qatar’s energy sector, Faiz Halim, an EIC Analyst, underscored: “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.”
Furthermore, one of the world’s largest energy trade associations is under the impression that Qatar aims to bolster its position as a key contributor to the energy transition, supported by its abundant reserves of natural gas. Based on the report’s findings, Qatar intends to substantially increase its LNG production from 77 million metric tonnes per annum (mtpa) to 126 million mtpa by 2027.
To this end, QatarEnergy, the state-owned energy company, already awarded multiple contracts worth billions of dollars for the construction and expansion of LNG facilities. The Persian Gulf state’s ambitious LNG expansion plans reinforce its position as the world’s largest LNG exporter, in the EIC’s book.
In addition, the country’s downstream sector is set to experience significant growth through the Ras Laffan Petrochemical Project (RLPP) and QatarEnergy, in partnership with Chevron Phillips, has made a final investment decision (FID) to advance this project.
Moreover, 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 while approximately 80 per cent of the Persian Gulf player’s LNG is directed towards Asian markets, catering to the region’s growing demand.
The EIC’s report also took into account Qatar’s efforts to strengthen its presence in the renewable energy sector, as the country plans to generate 5 gigawatts (GW) of solar power by 2035. To reach this goal, QatarEnergy has awarded engineering, procurement, and construction (EPC) contracts for two solar projects in Ras Laffan and Mesaieed.
Qatar is working on curbing emissions across all sectors by 25 per cent by 2030. In line with this, QatarEnergy’s Sustainability Strategy aims to decrease carbon intensity by 25 per cent in upstream operations and 35 per cent in LNG facilities by 2035. The company intends to implement carbon capture and storage technology to capture over 11 million tonnes of CO2 annually by 2035.
