Qatar to pursue mega gas projects
gulfnews.com
Abu Dhabi | By Nadim Kawach, Bureau Chief | 18/02/2004 | Print this page
Qatar has reassured world gas markets it will push ahead with mega projects to climb over 36 million tonnes to meet the fast growing global consumption and become the world's number one in LNG production.
Qatari Oil Minister Abdullah bin Hamad Al Attiyah said a staggering $60 billion could be pumped into development and expansion projects to tap the Gulf country's oil deposits and its mammoth gas wealth, the third largest in the world.
Al Attiyah made the pledge at an economic conference that was opened on Sunday in Doha, where former US Vice-President Al Gore and scores of industrialists gathered to view Qatar's massive hydrocarbon plans.
"Investments pumped and those needed to be channelled into such projects could exceed $60 billion… our plans in the gas sector are to go beyond 36 million tonnes per year in the next decade," said the Minister.
[ follow original link to see table in correct format - DPR ] gulfnews.com
QATAR'S LNG EXPORTS (Million tonnes)
2002
2003
2004
2005
2006
2007
2008
Qatargas
7.5
8.3
9.3
9.6
9.4
15.8
15.8
Rasgas
6
9.2
11.4
17.8
20.2
20.2
20.2
Source: Official Qatari data
GN graphic
Industry sources said the expansion of existing liquefied natural gas projects meant Qatar would overtake Indonesia within 10 years to become the world's top LNG supplier and ensure a fixed income in the long-term.
Qatar currently produces nearly 18 million tonnes of LNG and the expansions involve the installation of additional production trains with a similar capacity.
Qatar's original plans were to produce between 15-20 million tonnes of LNG per year but it decided to sharply exceed that level after it massively revised upwards its proven gas wealth at its giant North Field, the world's largest gas reservoir.
The expansions were also prompted by strong gas demand from Asia and other areas, mainly Japan, South Korea and India.
Five years ago, the North Field's deposits were officially estimated at around 8.5 trillion cubic metres but they are now put at as high as 25.5 trillion cubic metres, the third largest natural gas resources after those of Russia and Iran.
Qatar's main LNG producers are Rasgas and Qatargas, which have been launched over the past 15 years to tap the North Field.
Last year, Rasgas's output was estimated at around 9.2 million tonnes, while Qatargas produced nearly 8.3 million tonnes. Expansion plans will lift Rasgas's production to nearly 20.2 million tonnes in 2008 while Qatargas's output is expected to climb to around 15.8 million tonnes a year.
Qatar's LNG industry was given a strong push in October when the government and its foreign partners signed a $12 billion contract with the world's largest oil company, Exxon Mobil, for the supply of 15.6 million tonnes of LNG annually to the US market. Deliveries are due to begin in 2008-09.
Qatar is a small Opec oil producer, with crude reserves of around five billion barrels and output of nearly 700,000 barrels per day. Its oil income was estimated at around $5.5 billion in 2002 and $7.4 billion last year.
LNG projects are expected to sharply expand its income and its gross domestic product, which has already started to record the fastest growth rate in the Middle East. It surged by around five per cent in 2002 to $17.4 billion and was expected to have jumped by more than eight per cent last year.
With a population of just 650,000, LNG ventures have turned Qatar into the richest country in the Middle East and one of the wealthiest nations, with a per capita income of around $29,000 last year. |
