Qatar leads production growth - RTP pipeline manufacturer excerpts from China Oil News

Qatar leads production growth

The situation changed rapidly after the 21st century. Middle Eastern governments realized that low-cost natural gas could replace liquid fuels in the power and industrial sectors, freeing up more oil for export. At the same time, global demand for LNG was growing rapidly.

Countries have made significant investments to expand and upgrade their domestic natural gas pipeline networks. Saudi Arabia continued to expand its Master Gas system with the completion in 2001 of the Hawiyah gas plant, the first plant in Saudi Arabia to process non-associated gas. Qatar and Oman also began construction of LNG production lines. Qatar's first three lines were commissioned between 1996 and 1999, each with an initial capacity of 2.2 million tons per year. The Omani LNG line was commissioned in 2000.

In 2022, Middle East gas production is 72 billion cubic feet per day and Qatari LNG exports reach 80 million tons per year. In the future, Middle East gas production will continue to grow.

Middle East gas is breeding excellent opportunities for growth, considering the loss of gas market share in Europe by the production powerhouses. Approximately half of the projected growth in Middle East gas supply of 14 billion cubic feet per day by 2030 will be for LNG exports and the other half to meet growing domestic demand.

Qatar enjoys the lowest cost of gas production in the world, has the strongest overall competitiveness in the Middle East gas industry and is considered by international oil companies to be the jewel of the Middle East gas sector. Qatar has been aggressively positioned to continue to capture the natural gas development window and has established strong ties with global energy industry stakeholders to strengthen the country's position as a leader in the Middle East gas industry, with all equity partnerships for the Northern Field Expansion Project lasting 27 years to 2049.

While the U.S. had been the world's largest LNG exporter for several months in 2022, it is Qatar that is the world's largest LNG exporter on a year-round basis.

In recent years, Qatar has been planning to develop the world's largest natural gas field, the Northern Gas Field, to strengthen its position in the LNG export sector. In addition to the two major Chinese oil companies, Total Energy, Eni, ConocoPhillips, ExxonMobil and Shell have also taken stakes in Qatar's North Field expansion project, with the aforementioned companies holding 6.25%, 3.125%, 3.125%, 6.25% and 6.25% respectively in the project.