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HomeOil EconomyPetroleum & GasQatar will play pivotal role in LNG markets for decades - Woodmac

Qatar will play pivotal role in LNG markets for decades – Woodmac

  • Plans for North Field show massive scale of reserves

QatarEnergy says it is advancing its Liquefied Natural Gas (LNG) expansion project with a capacity of 16 million metric tonnes per annum (mmtpa), also a clear indication of a massive scale of gas reserves within the “giant” North Field capable of placing the gas country topmost on the global LNG leadership chart, Woodmac reports.

The report indicates that the proposed new project now called the “North Field West” NFW would be supplied by the western sector of the North Field.  The Field had come following an appraisal drilling and studies carried out that it now houses recoverable gas estimates of between 240 trillion cubic feet (tcf) of gas to over 2,000 (tcf), Woodmac report reveals. The report also reveals corresponding increase in the condensate volume from 70 billion barrels to over 80 billion barrels.

“This is a signal of intent by QatarEnergy and the expansion plus reserve increases reassure buyers that while there are uncertainties in other pre-FID projects around the world, Qatar has the volume”, says Fraser Carson, Woodmac’s senior research analyst on LNG.

“The timing is fortuitous – the Biden administration has paused US export approvals, Russian LNG is sanctioned, and civil unrest continues in Mozambique. As other major LNG competitors stall, QE continues to expand its capacity at pace.”

The report adds that NFW LNG plant will have a 16 mmtpa capacity, likely from a pair of 8 mmtpa mega trains, as utilized in the recent North Field South (NFD) expansion, and which once fully ramped, NFW will take Qatar’s LNG production capacity to 142 mmtpa.

“This project also expedites the monetization of the gigantic North Field gas resource, a priority given the uncertainties of the energy transition”, Carson said.

“QatarEnergy is incentivized to make sure its gas remains affordable to emerging LNG buyers to entrench the role of gas and LNG in these economies.”

The report further states that once the NFW expansion comes online it will likely take Qatar’s total production – currently forecast to peak at around 6.4 million barrels of oil equivalent per day (boe/d) in 2030 – over the 7 million boe/d threshold.

“With oil production forecast to decline post-2030, the added condensate volumes will help stabilize the country’s liquids output”, Carson said.

Concluding the report states that global gas demand will grow by 13.5%, or more than 500 billion cubic metres (bcm) between 2023 and 2033, primarily supported by the Asian demand. During the same period, global LNG will grow by more than 200 million tonnes, so Qatar is advantaged, going by its strategic location.

The country is therefore capable of meeting its long term demand growth in South and South East Asia, while still delivering into Europe as occasions will demand.

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