Doha – Mubasher: Qatar National Bank (QNB) on Sunday reported that Qatar's resumption of gas development is in line with the international liquefied natural gas (LNG) market, which will contribute to increasing the country’s national income, especially after hosting the FIFA World Cup 2022, and starting production.
The world market will witness a surplus in LNG supply until 2020, after which shortages will emerge; hence, Qatar will increase its competitiveness to obtain a share during the next decade.
Natural gas prices rose from $4.1 per million British thermal units (BTU) in May 2016 to $10 in February, according to QNB’s report.
The continuous increase in gas prices may lead producers to acquire long-term sales contracts at prices which are considered higher than those of new projects. This may stand in the way of starting some suggested projects, the report added.
Qatar could increase its production by removing bottlenecks in existing facilities, which will keep the cost at the lowest level, the report pointed out.
The resumption of Qatar's development of the North Dome Field would produce 15.2 million tonnes annually during 5 to 7 years, with a 10% increase of the total gas production.
The new supplies of LNG by 2020 will be mainly from the US and Australia, which will add about 10% of gas per year to world production, exceeding the demand growth of about 6%.
QNB predicted that market production will reduce after 2020, whereas supply will remain largely stable.
Qatar is considered the biggest LNG producer and exporter worldwide.
