Isolated Qatar plans to boost gas output by 30%

  • Isolated Qatar plans to boost gas output by 30%

Isolated Qatar plans to boost gas output by 30%

The timing of the announcement suggests that Opec member Qatar, the world's largest producer of liquefied natural gas, aims to ignore threats from neighbourd and concentrate on business and economy.

But Saudi Arabia and other neighbors have threatened to sanction any worldwide firm that works with Qatar, which analysts said could limit interest.

Qatar Petroleum had already said in April that it was lifting a self-imposed ban on development in the huge offshore North Field, which it shares with Iran and where the additional output will come from.

The countries, which include Egypt, Saudi Arabia, United Arab Emirates, and Bahrain, had given Qatar a list of demands, including shutting down Al Jazeera and paying an unspecified amount in reparations for "loss of life and other financial losses caused by Qatar's policies in recent years".

The energy-rich emirate of Qatar confirmed Tuesday it meant to raise natural gas production to 100 million tons a year by 2024, as it seeks to portray an image of business as usual despite a bitter spat with its Arab neighbors.

Reports quoting Saad Sherida al-Kaabi, the CEO of Qatar Petroleum, said his company meant to raise production from 77 million tonnes of natural gas to 100 million tonnes a year by 2024.

The increase comes as Qatar faces a diplomatic crisis with its Gulf Arab state neighbors that has seen several countries put sanctions on Qatar for alleged links to terrorist organizations.

Kaabi said there is no cooperation with Iran on any project in the North Field, but the countries have a joint committee that meets every year to discuss development of the field.

"We have absolutely no fear of having the embargo in place", he said.

"We will be looking for global partners to join us", he said, declining to say when a tender would be issued.

"The companies that choose not to work with us - that's fine, that's their choice".

"If there are no companies willing to work with us, we will do the 100 million tonnes", he said, according to Reuters.

Qatar's state-owned petroleum company is planning a significant increase in natural gas production, its chief executive said on Tuesday, July 4.

In 1997, when its first shipment of LNG sailed to Japan, Qatar's exports were valued at around $5bn.