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169495
Sun, 03/20/2011 - 14:09
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Qatar to Invest in LNG Receiving Facilities - Minister
Doha , March 20 (QNA) - HE the Minister of Energy and Industry Mohammed Saleh Al-Sada said that Qatar's production of Liquefied Natural Gas (LNG) will reach 170,000 barrel a day this year, and that Qatar's petrochemical industry aims to reach a total of 19 metric tons in the various petrochemical products.
In an exclusive interview with Qatar News Agency (QNA), the minister said "we (Qatar) are always looking for optimum ways and markets that satisfy our goals and conditions, investing in heavy industries such as LNG receiving stations or of petrochemicals and fertilizers could be".
Argentina and Jordan had announced previously that they constructed their LNG receiving facilities and Qatar will study investing in LNG receiving stations in targeted markets to increase the country's LNG exports. "Increasing LNG receiving stations is something that involves a number of economic and technical as well as political factors, but these (factors) are continuously being studied (by Qatar)," the minister said.
Under the Doha Development Agenda launched in the 4th ministerial meeting of World Trade Organization hosted by Doha 2001, Qatar suggested that LNG should be considered an environmental product, hence it should qualify for tariff cuts which would increase the product's trade and also make cheaper.
Al-Sada said that Qatar continues to coordinate to gain that accreditation, "the initiative offers a face of a civilized Qatar because it (the initiative) is concerned with preserving the environment. It is Qatar's participation in preserving the environment on a global scale," said the minister.
There has also been a drop in LNG prices since 2008 which might have taken its toll on the country's economy. However, the minister said that Qatar's policies prevented that from happening. "It is worth mentioning that Qatar's exporting policies rely on long-term agreements and is connected to the price of oil; this curbed the negative effects (a drop in the price could have had on the economy). Qatar also is flexible and can vary its targeted LNG markets depending on the (markets') demand," he said.
Al-Sada also said that LNG prices are expected to go up soon, "a lot of experts don't think that the low prices will last much longer, especially as the world is recovering from the global economic crisis," he said.
The minister said that Qatar is in talks with China to increase its exports to the Asian country, "there are talks with China to increase its exports of LNG, especially that the demand for Liquefied Natural Gas is expected to increase once LNG receiving stations are established and as power plants switch to using LNG rather than coal," he said. on the other end of the globe, Qatar is also tapping into new markets in North and South America; "long-term agreements have been signed in some areas in North America. As for South America, which is considered a new and promising market for LNG, Rasgas has already delivered LNG shipments to Brazil, Argentina, and Chile," said the minister.
There is currently instability in terms of pricing mechanisms for LNG according to Al-Sada. The over-supply in LNG that occurred as a result of the global economic crisis had prompted LNG importers to demand revising LNG's pricing mechanisms so that LNG is de-coupled from oil prices and move towards gas indexed-pricing which most likely will yield a lower price for LNG. However producers of LNG maintain that LNG should be treated fairly and in proportion with the huge projects it is used for, "we are looking at two different powers that want to drive the price at different directions but Qatar maintains that LNG prices should be coupled with the price of oil," the minister said.
In addition to Liquefied Natural Gas, Qatar produces 14 million tons of Liquefied Petroleum Gas (LPG) annually and is expected to become a key producer of that product. The minister said that Qatar will export most of its LPG "to markets in Asia to be used in the petrochemicals industry and on a smaller scale in transportation and household use".
The price of petrol has also been one of the highly-debated issues recently; unrest in the Middle-East has driven the price of oil to break the $100 after it was priced at below $50 dollars a barrel. The minister believes that $80 a barrel is the optimum price for oil now, "we (Qatar) believe that $80 dollars a barrel seems fair and would encourage inspection and production (of oil) and won't damage the consumers' (of oil) economy," he said.
Qatar will also focus on nurturing balanced industries according to the minister. "Nurturing balanced industries is considered one of the prime goals for the energy sector." Al Sada added that this will help in "diversifying the country's income".
The minister said that Qatar has sharp plans for the country's petrochemicals industry. "The future plans for Qatar's petrochemical industry aims to reach a total of 19 metric tons in the various petrochemical products," he added, saying that by the end of implementing those plans Qatar Fertilizer Company (QAFCO) will be "the biggest single producer of Ammonia and Urea in the world".
The minister said that the global move toward renewable energy does not represent a threat to OPEC nations; "it is a complementing energy source while crude oil will remain the primary," the minister said. He added that work in Qatar is already taking place so that the country plays a part in the growth in the industry of renewable energy; "using renewable energy (in Qatar) has begun by founding the infrastructure for the solar energy industry, (Qatar has) a silicon-producing factor which will produce 3500 tons of silicon annually". The minister also said that the Qatar National Convention Center is securing 12% of its energy needs using solar energy.
In an exclusive interview with Qatar News Agency (QNA), the minister said "we (Qatar) are always looking for optimum ways and markets that satisfy our goals and conditions, investing in heavy industries such as LNG receiving stations or of petrochemicals and fertilizers could be".
Argentina and Jordan had announced previously that they constructed their LNG receiving facilities and Qatar will study investing in LNG receiving stations in targeted markets to increase the country's LNG exports. "Increasing LNG receiving stations is something that involves a number of economic and technical as well as political factors, but these (factors) are continuously being studied (by Qatar)," the minister said.
Under the Doha Development Agenda launched in the 4th ministerial meeting of World Trade Organization hosted by Doha 2001, Qatar suggested that LNG should be considered an environmental product, hence it should qualify for tariff cuts which would increase the product's trade and also make cheaper.
Al-Sada said that Qatar continues to coordinate to gain that accreditation, "the initiative offers a face of a civilized Qatar because it (the initiative) is concerned with preserving the environment. It is Qatar's participation in preserving the environment on a global scale," said the minister.
There has also been a drop in LNG prices since 2008 which might have taken its toll on the country's economy. However, the minister said that Qatar's policies prevented that from happening. "It is worth mentioning that Qatar's exporting policies rely on long-term agreements and is connected to the price of oil; this curbed the negative effects (a drop in the price could have had on the economy). Qatar also is flexible and can vary its targeted LNG markets depending on the (markets') demand," he said.
Al-Sada also said that LNG prices are expected to go up soon, "a lot of experts don't think that the low prices will last much longer, especially as the world is recovering from the global economic crisis," he said.
The minister said that Qatar is in talks with China to increase its exports to the Asian country, "there are talks with China to increase its exports of LNG, especially that the demand for Liquefied Natural Gas is expected to increase once LNG receiving stations are established and as power plants switch to using LNG rather than coal," he said. on the other end of the globe, Qatar is also tapping into new markets in North and South America; "long-term agreements have been signed in some areas in North America. As for South America, which is considered a new and promising market for LNG, Rasgas has already delivered LNG shipments to Brazil, Argentina, and Chile," said the minister.
There is currently instability in terms of pricing mechanisms for LNG according to Al-Sada. The over-supply in LNG that occurred as a result of the global economic crisis had prompted LNG importers to demand revising LNG's pricing mechanisms so that LNG is de-coupled from oil prices and move towards gas indexed-pricing which most likely will yield a lower price for LNG. However producers of LNG maintain that LNG should be treated fairly and in proportion with the huge projects it is used for, "we are looking at two different powers that want to drive the price at different directions but Qatar maintains that LNG prices should be coupled with the price of oil," the minister said.
In addition to Liquefied Natural Gas, Qatar produces 14 million tons of Liquefied Petroleum Gas (LPG) annually and is expected to become a key producer of that product. The minister said that Qatar will export most of its LPG "to markets in Asia to be used in the petrochemicals industry and on a smaller scale in transportation and household use".
The price of petrol has also been one of the highly-debated issues recently; unrest in the Middle-East has driven the price of oil to break the $100 after it was priced at below $50 dollars a barrel. The minister believes that $80 a barrel is the optimum price for oil now, "we (Qatar) believe that $80 dollars a barrel seems fair and would encourage inspection and production (of oil) and won't damage the consumers' (of oil) economy," he said.
Qatar will also focus on nurturing balanced industries according to the minister. "Nurturing balanced industries is considered one of the prime goals for the energy sector." Al Sada added that this will help in "diversifying the country's income".
The minister said that Qatar has sharp plans for the country's petrochemicals industry. "The future plans for Qatar's petrochemical industry aims to reach a total of 19 metric tons in the various petrochemical products," he added, saying that by the end of implementing those plans Qatar Fertilizer Company (QAFCO) will be "the biggest single producer of Ammonia and Urea in the world".
The minister said that the global move toward renewable energy does not represent a threat to OPEC nations; "it is a complementing energy source while crude oil will remain the primary," the minister said. He added that work in Qatar is already taking place so that the country plays a part in the growth in the industry of renewable energy; "using renewable energy (in Qatar) has begun by founding the infrastructure for the solar energy industry, (Qatar has) a silicon-producing factor which will produce 3500 tons of silicon annually". The minister also said that the Qatar National Convention Center is securing 12% of its energy needs using solar energy.
