Despite a significant drop in global gas prices, Qatar is planning to increase its gas production. QatarEnergy CEO Saad al-Kaabi announced a new expansion of liquefied natural gas production that will add 16 million tonnes per annum to existing plans, bringing total capacity to 142 mtpa. This expansion comes as US gas prices are at an all-time low, despite a decade of increased output making the US a top oil and gas exporter. Gas prices in Europe have also fallen, but thanks to help from the US and Qatar in replacing lost volumes.
Kaabi stated that gas markets in Asia will continue to grow, while Europe will still require more gas in the future. Qatar plans to continue expanding production to meet market demands. The overall expansion of the North Field represents an 85% increase in production, with Qatar being one of the top LNG exporters globally.
The latest expansion is part of QatarEnergy’s North Field project, with exploration activities prompting the decision to expand further. The project will require the construction of two LNG trains and will cost billions of dollars. Kaabi also mentioned that QatarEnergy will move forward with the project on its own initially, without seeking partners.
The North Field is part of the world’s largest gas field, shared with Iran, known as South Pars.