FILE PHOTO: The logo of Qatar Petroleum is seen at its headquartes in Doha, Qatar, July 8, 2017. Picture taken July 8, 2017. REUTERS
Qatar Petroleum (QP)’s strategy to expand its footprint globally will position Qatar as a major player in the international gas industry and will increase its say in the global gas market.
“The (QP’s) expansion plan has encompassed investments in the US, Argentina, Brazil, Mexico and other markets. Much of the investment activity is by way of partnering with firms in the gas industry,” Finbarr Sexton, Partner at EY QATAR, said in an interview with TOGY (The Oil & Gas Year).
“These investment plays includes both conventional and non-conventional oil and gas assets. These investments will position Qatar as a major player in the global gas industry. In the long-term view, Qatar will probably have a greater say in what is happening in gas markets internationally,” he added.
QP has taken several measures to expand its operations, aiming to become a major international player in the oil and gas industry.
One of the major decisions was to increasing its LNG production capacity. QP had announced in September last year that it would increase the capacity of Qatar’s LNG expansion project, which was announced in 2017, by adding a fourth liquefaction train.
After the completion of project, Qatar’s LNG production capacity would reach 110 million tonnes per annum (MTPA), representing an increase of around 43 percent from its current production capacity of 77 MTPA.
Sexton said Qatar’s investment in US energy sector will strengthen the relations between the two countries.
“The decision to invest in the US energy sector and the development of the Golden Pass LNG export facility will give QP an important position in the US LNG export sector. It’s not just an investment for a return; it’s also strategic to get access to decision-making and pricing in the gas market,” said Sexton.
In February this year, QP and ExxonMobil announced that they had taken the final investment decision for developing the Golden Pass LNG export project. The project, located in Sabine Pass, Texas, is owned by Golden Pass Products — a joint venture between affiliates of Qatar Petroleum and ExxonMobil.
“Qatar wants to demonstrate it is investing in other markets and is beginning to get access to them. Whilst these investments will provide a sustainable revenue for future generations, the investments are also important from a geopolitical standpoint – the significant investment in US oil and gas assets will further strengthen Qatar’s relationship with the US administration,” he added.
He said that the continued preference towards cleaner energy will drive interest in natural gas and LNG. In the longer term, more nations will press for fuel oil generation conversion to natural gas, which will drive LNG development infrastructure.
“Qatar is now leading the race to secure first-mover advantage in tying up new supply contracts,” he added.
