QP to Increase LNG Production by 30%

Doha, July 04 (QNA) - Qatar Petroleum (QP) announced Tuesday its intention to raise Qatar's Liquefied Natural Gas (LNG) production from 77 million to 100 million tons per year, which means a 30% production increase. Speaking at a press conference held today, Managing Director and CEO of Qatar Petroleum Eng. Saad Sherida Al Kaabi said that the new additional volumes will be secured by doubling the size of the new gas project in the southern sector of the North Field, which Qatar Petroleum had announced last April. This will increase the North Field's production of natural gas, condensate and other associated products by one million barrels of oil equivalent per day, he added. "Once completed, within 5-7 years from now, this project will raise the production of the State of Qatar to about 6 million barrels of oil equivalent per day," the President & CEO of Qatar Petroleum said. With the conclusion of further technical studies, QP has decided that the best option would be to double the size of the project to 4 billion cubic feet of gas per day, he said. After further assessment, QP have decided that the best way to develop this huge project is by dedicating it to the production and export of liquefied natural gas, thereby increasing the production capacity of the State of Qatar from 77 million tons to 100 million tons per year, which means a 30% production increase, he said. Eng. Al Kaabi also stressed that this project will strengthen Qatar's position as the world's largest LNG producer and exporter in line with Qatar Petroleum's strategic growth plan and objectives of becoming one of the best national oil and gas companies in the world. QP's Managing Director and CEO noted that this new project will meet Qatar's worldwide customers' growing needs for LNG as a reliable and environmentally friendly fuel and will also contribute to monetizing Qatar's resources and to stimulating the domestic economy as well as the country's overall development in line with the Qatar National Vision 2030. Gas market studies project that the demand for LNG is set to increase in about five years, Al Kaabi said, adding that the production of the project coincides with this expected growth. The Qatar Petroleum CEO and managing director said he expects that the production growth will be achieved by increasing the production capacity of the current 14 production lines and adding new ones, which will be determined in detail after further studies. Whether the production increase is achieved through the expansion of production lines or the addition of new ones, Al Kaabi said, it will be in partnership with international energy companies whose identities are yet to be decided. Asked about the pressures that the countries besieging Qatar may exercise on QP partners to stop its activity in Qatar, Al Kaabi stressed that the company will continue to work under any circumstances and that the siege will not affect it in any way. He added that there is an alternative in case that any of the partners or companies that work with Qatar Petroleum withdraws. Under the most extreme circumstances, he said, QP can act as a national company and carry out 100% of required tasks in order to ensure non-stop operation. Al Kaabi also revealed that QP and Total Qatar will celebrate the launching of their joint venture, North Oil Company, which is 70% owned by QP and 30% by Total, which is responsible for developing and operating of Al-Shaheen Oil Field. On the other hand, Al Kaabi said that the State of Qatar will continue to supply gas through pipelines to the United Arab Emirates and the Sultanate of Oman, noting that UAE's ADNOC company has illegally stopped its imports of condensers from Qatar, saying that Qatar Petroleum will take legal action in this regard. He also affirmed the continuation of the plans to merge RasGas and Qatargas under the name of Qatargas, with the merger process set to complete by the end of the year, adding that plans to increase the production will not affect the merger. (QNA)