Qatar's LNG Dominance: Set to Fuel 40% of Global Demand by 2029, Reveals Energy Minister
Qatar's LNG Dominance: Set to Fuel 40% of Global Demand by 2029, Reveals Energy Minister

Qatar's LNG Dominance: Set to Fuel 40% of Global Demand by 2029, Reveals Energy Minister

  • 18-Jul-2023 10:51 AM
  • Journalist: Jacob Kutchner

Qatar: The 20th International Conference & Exhibition on Liquified Natural Gas (LNG) in Vancouver, Saad Sherida Al-Kaabi, the CEO of QatarEnergy and the country's energy minister, announced that QatarEnergy is set to contribute 40% of all new LNG to the market by 2029. Al-Kaabi highlighted the importance of gas as the cleanest fossil fuel for electricity production and industrial factories, adding that 2027 Qatar's liquefied natural gas (LNG) output is set to increase by 64%, with the approval of expansion projects that would bring the annual production capacity up to 126 million tonnes. The North Field South Project will involve constructing six LNG mega trains, thus providing opportunities for US energy companies to introduce clean, green, and smart technologies to these new facilities.

QatarEnergy announced in August 2021 its aim to reduce greenhouse gas (GHG) emissions by 25 percent by 2030 and allocated $170 million towards this effort. The company's most recent sustainability strategy outlines several initiatives to reduce greenhouse gas emissions, including reducing methane emissions to below 0.2 wt% covering all assets. QatarEnergy has also partnered with GE to develop a carbon capture roadmap and low-carbon solutions. Additionally, the company has signed a deal with a US giant to further develop their carbon capture roadmap. These efforts demonstrate QatarEnergy's commitment to reducing its carbon footprint and promoting sustainability.

To Saad Sherida Al-Kaabi, Qatar currently has the biggest sequestration site in the MENA region. They are injecting over 2 million tonnes per annum of sequestered CO2 and plan to increase it to 11 million tonnes per annum in the coming years. Additionally, Qatar is using solar power to fuel some of its new LNG production, resulting in one of the lowest LNG carbon intensities in the world. Al-Kaabi assures that they are reducing emissions in a responsible manner. Meanwhile, a report published by the Energy Information Administration (EIA) in March 2023 reveals that Qatar's total petroleum and other liquids production has declined from 2 million barrels per day in 2012 to below 1.9 million in 2022. Despite this, Al-Kaabi calls for transparent discussions on the demonization of oil and gas, citing the significant loss in investments in the sector, with an average 25% reduction over the last ten years from the expected investment cycle.

Global market hasn't been significantly impacted by the current situation due to a warm winter in 2022-23 and Europe's full storage. However, replenishing the storage won't be easy, and necessary investments are still lacking, according to Al-Kaabi, who advocates for sustainability and energy transition. He urged people not to be selfish by ending oil and gas supplies when billions still lack access to basic electricity. Despite facing doubts about investing in oil and gas, the minister emphasized the importance of these resources. Qatar will host the next LNG Conference & Exhibition in 2026, bringing together numerous key speakers and industry leaders.

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