Qatar to increase production of LGN to 142 million tonnes per year by 2030
Qatar is advancing one of the world’s largest
liquefied natural gas (LNG) expansion programs, aiming to lift output from 77
million tonnes per year (mtpy) today to 142 mtpy by 2030. By then, the Gulf
state is projected to supply 40% of all new global LNG.
The first shipments from Phase 1 of the North
Field East (NFE) expansion will begin next year, driving production to 110 mtpy
by 2026, 126 mtpy by 2027, and 142 mtpy by the end of the decade. This $83
billion mega-project, backed heavily by Western energy majors including
ExxonMobil, ConocoPhillips, Shell, TotalEnergies, and Eni, will cement Qatar’s
role at the heart of global energy security.
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LNG’s importance surged after Russia’s invasion
of Ukraine in February 2022, as sanctions squeezed Moscow’s oil and gas
exports. Unlike pipelined gas, LNG can be swiftly shipped to any market, making
Qatar indispensable as Europe and Asia scrambled for new supplies.
Balancing East and West
Qatar’s diplomatic strategy has long involved
careful maneuvering between rival blocs. From 2021, Doha leaned toward Beijing,
signing a series of long-term supply deals with Chinese firms such as Sinopec
and Guangdong Energy. Given that Qatar shares the world’s largest gas
reservoir—the North Dome/South Pars—with Iran, a close ally of Russia and
China, many analysts saw a tilt toward the Eurasian camp.
But Western pressure following the Ukraine war
pushed Qatar back toward Europe and the U.S. In 2022, Washington designated
Qatar a “major non-NATO ally,” while Doha signed a landmark cooperation deal
with Germany. Subsequent agreements with ConocoPhillips, ExxonMobil, and German
buyers locked in LNG supplies for at least 15 years starting 2026.
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Geopolitical Leverage
Qatar’s position has since strengthened
further. The emirate has supported U.S. diplomatic efforts in the Middle East,
while retaining deep energy ties with Asia. Yet tensions remain. Earlier this
year, Doha threatened to suspend LNG deliveries to the EU over the bloc’s
proposed Corporate Sustainability Due Diligence Directive. European security
officials say exemptions will likely be crafted to avoid disrupting supplies.
For Washington and its allies, securing Qatari
LNG is pivotal—not only to cut Europe’s dependence on Russian gas, but also to
limit Beijing’s unfettered access to energy. “Weakening Russia’s war chest and
complicating China’s Taiwan ambitions both hinge partly on Qatar,” an EU
security source told OilPrice.com.
With output set to nearly double by 2030,
Qatar is not only reshaping global gas markets but also entrenching itself as a
critical player in the geopolitical contest between East and West.
Source: https://oilprice.com/