Qatar to boost LNG production by 85% by 2030

Extensive appraisal drilling and testing have confirmed that productive layers of Qatar’s giant North Field extend towards the west, which allows for developing a new production project in Ras Laffan.

Qatar’s Minister of State for Energy Affairs and President and chief executive of QatarEnergy, Saad Sherida Al-Kaabi, made the announcement at a press conference in Doha on 25 February.

The minister said, “We have continued geological and engineering studies and have drilled a number of appraisal wells in that area. I am pleased to announce that these great efforts have confirmed, through technical tests of the appraisal wells, the extension of the North Field’s productive layers further towards the west, which means the ability to produce significant additional quantities of gas from this new sector.”

The additional gas quantities in the North Field are estimated at 240 Trn cubic feet, which raises Qatar’s gas reserves from 1,760 to more than 2,000 Trn cubic feet, and the condensates reserves from 70 to more than 80Bn barrels, in addition to large quantities of liquefied petroleum gas, ethane and helium.

Minister Al-Kaabi said, “These are very important results of great dimensions that will take Qatar’s gas industry to new horizons, as they will enable us to begin developing a new LNG project from the North Field’s western sector with a production capacity of about 16 mta.”

“As such, the State of Qatar’s total LNG production will reach about 142 mta when this new expansion is completed before the end of this decade.”

The figure would represent an increase of almost 85% from current production levels and if complete, would see Qatar’s total hydrocarbon production exceed 7.25M barrels of oil equivalent per day.

QatarEnergy also recently confirmed it has selected Qatar Gas Transport Co Ltd (Nakilat) to be the owner and operator of up to 25 conventional-size LNG carriers. The orders will be conditional upon the signing of time charterparty (TCPs) agreements by affiliates of QatarEnergy and Nakilat.

QatarEnergy will commence the basic engineering work for the new North Field West project.

The news of more capacity in the future comes in the wake of the United States’ moratorium on new export permits. Last month, the Biden Administration said it would temporarily pause future LNG export permits, a move that many in the industry perceive as having been influenced by domestic politics as he attempts to win re-election. 

However, the moratorium is not expected to affect any of the major LNG terminals currently being built. At least five major export terminals are coming online on the Gulf Coast and there are other major projects in Canada and Mexico. 

The United States is now the world’s largest exporter of LNG and a continued increase in supply is likely with global demand growing.