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QNA
doha
Qatar's credible commitment to its global liquid natural gas (LNG) supply deals has pushed countries like Bangladesh and Pakistan to offer new contracts, the Economic Advisor at Amiri Diwan Ibrahim al Ibrahim has said.
Delivering a lecture at Carnegie Mellon University in Qatar (CMU-Q) on Tuesday, he said the two mentioned countries hailed Qatar's credibility in terms of LNG supply contracts, especially after continuing to supply UAE with natural gas despite the political circumstances.
"Qatar's supply of LNG to UAE was not only commercial, but also because of Qatar's keenness to supply GCC countries with gas, as UAE got prices in this contract below market prices at that time," he said.
During the lecture, Ibrahim, who is also Vice Chairman of the Board of Qatar Gas Company Limited, explained the reality and future of natural gas in Qatar.
He noted the LNG sector faces challenges on the supply side, including the developments of shale gas industry in the US, the expansion of LNG production in Australia, and the emergence of Russia and some African countries in the sector.
On the demand side, there will be an expansion of gas consumption in large economies such as China, India and Brazil, Ibarhim said.
The Amiri Deewan economic advisor suggested that Qatar should adhere to the pillars of its LNG strategy to weather these challenges.
"These encompass a fully integrated production and delivery model, cost optimisation in the LNG delivery model, and the leveraging of the Qatargas brand, which is associated with reliability, flexibility, loyalty, and a strict compliance to contractual obligations," he said.
Ibrahim said,"While the development of shale gas would have a negative impact on LNG prices in the short-term, the impact could be positive in the long-term, particularly for large gas suppliers such as Qatar.
"In other words, the development of shale gas would contribute to lengthening the duration of gas as a viable source of energy."
According to Ibrahim, the changes in the global LNG market require Qatar to adjust its strategy to maintain its position as the world's leading LNG supplier.
Qatar should also intensify the development of its gas resources, he said, noting that the country has recently lifted the moratorium on expanding production from the North Field, and announced its intention to increase its LNG production capacity by 32 million tonnes.
"This announcement is expected to affect future projects from marginal suppliers, and the resulting capacity would allow Qatar to maintain its position as a leading world LNG exporter for years to come," Ibrahim said.
In a press statement on the sidelines of the lecture, Ibrahim said that tenders to raise Qatar's LNG production to 110 million tonnes per year will be issued soon, stressing that competition will be transparent between companies wishing to invest, where the standard is based on the ability of the companies that bid for such tenders.
On the CMU-Q event, he said,"The Dean's Lecture Series is an opportunity to speak directly to the students about issues that are crucial to Qatar. As we develop Qatar's long-term policies for LNG, it is crucial that young people understand the issues that we face."
