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Rahul Preeth
Doha
COVID-19 or not, there is no stopping the energy ambitions of Qatar. In fact, the pandemic may even work to Qatar’s advantage by nipping some possible LNG competitions in the bud, according to PwC.
In its second edition of the Qatar Economy Watch report, the multinational consultancy said the long-term outlook for the country’s second gas boom would remain largely unaffected, no matter what the eventual economic impact of COVID-19 will be on the energy market and Qatar’s non-hydrocarbons economy.
Last year, Qatar Petroleum announced that it would raise the country’s liquefied natural gas (LNG) production capacity to 126 million tonnes per annum (mtpa) by 2027, an increase of 64 percent from the current 77 mtpa.
PwC argued that the current crisis precipitated by the pandemic might delay or cancel major LNG investments and therefore would work to Qatar’s advantage.
“When it comes to the impact of the oil market, Qatar is better situated than other hydrocarbon exporters — thanks to its natural gas reserves — and should be better positioned to weather the (COVID-19) shocks,” Bassam Hajhamad, PwC Qatar Country Senior Partner, said.
Qatar’s second gas boom is about to get underway and may even benefit as some competitors struggle because of the current weakness in energy markets, he said. According to the report, the revenue from Qatar’s LNG expansion provides clear visibility for its long-term finances.
“This will enable local firms to develop their post-COVID-19 business plans with minimal risks related to potential changes in tax or spending policy, unlike in other Gulf states where significant changes are required to balance budgets,” it notes.
The report also outlines PwC’s outlook on Qatar’s economy, including the short-term economic impact of the COVID-19 crisis, the other opportunities the crisis has brought and how Qatar has capitalised on its well-established resilience and crisis management framework.
The report also gives an in-depth status review on Qatar’s long-term efforts towards becoming a knowledge-based economy.
“The current environment presents both opportunities and challenges to Qatar. It accelerates existing moves on national digitisation and localisation, as part of developing a more resilient knowledge-based economy,” Hajhamad said.
In its outlook for Qatar, PwC said despite the challenging current environment and uncertainty, the country would remain proactive and responsive to changing environments, efficiently adapting their short-term actions to their long-term plans.
Shifts in global markets, political disagreements, and environmental shocks are all considerations we expect Qatar to address as they accelerate the execution and impact of Qatar’s National Vision 2030, it added.
Doha
COVID-19 or not, there is no stopping the energy ambitions of Qatar. In fact, the pandemic may even work to Qatar’s advantage by nipping some possible LNG competitions in the bud, according to PwC.
In its second edition of the Qatar Economy Watch report, the multinational consultancy said the long-term outlook for the country’s second gas boom would remain largely unaffected, no matter what the eventual economic impact of COVID-19 will be on the energy market and Qatar’s non-hydrocarbons economy.
Last year, Qatar Petroleum announced that it would raise the country’s liquefied natural gas (LNG) production capacity to 126 million tonnes per annum (mtpa) by 2027, an increase of 64 percent from the current 77 mtpa.
PwC argued that the current crisis precipitated by the pandemic might delay or cancel major LNG investments and therefore would work to Qatar’s advantage.
“When it comes to the impact of the oil market, Qatar is better situated than other hydrocarbon exporters — thanks to its natural gas reserves — and should be better positioned to weather the (COVID-19) shocks,” Bassam Hajhamad, PwC Qatar Country Senior Partner, said.
Qatar’s second gas boom is about to get underway and may even benefit as some competitors struggle because of the current weakness in energy markets, he said. According to the report, the revenue from Qatar’s LNG expansion provides clear visibility for its long-term finances.
“This will enable local firms to develop their post-COVID-19 business plans with minimal risks related to potential changes in tax or spending policy, unlike in other Gulf states where significant changes are required to balance budgets,” it notes.
The report also outlines PwC’s outlook on Qatar’s economy, including the short-term economic impact of the COVID-19 crisis, the other opportunities the crisis has brought and how Qatar has capitalised on its well-established resilience and crisis management framework.
The report also gives an in-depth status review on Qatar’s long-term efforts towards becoming a knowledge-based economy.
“The current environment presents both opportunities and challenges to Qatar. It accelerates existing moves on national digitisation and localisation, as part of developing a more resilient knowledge-based economy,” Hajhamad said.
In its outlook for Qatar, PwC said despite the challenging current environment and uncertainty, the country would remain proactive and responsive to changing environments, efficiently adapting their short-term actions to their long-term plans.
Shifts in global markets, political disagreements, and environmental shocks are all considerations we expect Qatar to address as they accelerate the execution and impact of Qatar’s National Vision 2030, it added.
