Qatar began construction on Tuesday of a production field project to expand production from the world’s biggest natural gas field. The project aimed to expand production through an export terminal on the Gulf emirate’s northeast coast.
Demand for the Qatari gas market has been growing since Russia Russia-Ukraine conflict began in February 2022.
As the gas supply is reduced to European countries from Russia, European countries are mounting pressure to replace the Russian gas supply with the supply from Qatar and other Gulf countries.
Amir Sheikh Tamim bin Hamad Al-Thani was present as a chief guest at the ceremony held to lay the foundation stone for the North Field expansion at Ras Laffan, Qatar Energy’s onshore gas processing base 80 km north of Doha. Sheikh Tamim wrote on X.
Saad Al-Kaabi, energy minister of Qatar, said Qatar is aiming to maximise the production of liquified natural gas (LNG). The high level of LNG production will fulfil the demand of cunsumers who are lined up to get the supply of gas products from Qatar.
By increasing the production in the production field, Qatar is set to raise its output of LNG by 60 per cent or more than 126 million tons per year by 2027.
Many Asian countries led by China, Japan, and South Korea are some of the main markets for Qatari gas. However, after the war between Ukraine and Russia, many European countries also demanded the supply from the Qatar side.
Chairman of France’s TotalEnergies Patrick Pouyanne told reporters that the North Field Expansion was a “huge project”, coming as demand for LNG from Europe increases.
Patrick Pouyanne also cleared that Europe needs more supply even market is fragile. According to him, this expansion project in Qatar is are major one and will give some relief to European markets.
In June 2023, Doha announced a 27-year deal to supply gas to China’s National Petroleum Corporation.
Qatar is the world’s top LNG producer alongside the USA, Russia, Australia etc. Qatar Energy estimates the North Field holds about 10 per cent of the world’s known natural gas reserves.