Qatar intends to expand its LNG output capacity, tapping the world's biggest natural gas field, after a self-imposed ban on expansion that lasted 12 years, according to the chief executive of Qatar Petroleum.
Qatar declared a moratorium in 2005 on the development of the North Field, which it shares with Iran, to give it time to study the impact of a rapid rise in output on the reservoir.
The vast offshore gas field, which Qatar calls the North Field and Iran calls South Pars, accounts for nearly all of Qatar's gas production and around 60% of its export revenue.
"We have completed most of our projects and now is a good time to lift the moratorium," QP Chief Executive Saad al-Kaabi told reporters April 3rd at Qatar Petroleum's headquarters in Doha. "For oil there are people who see peak demand in 2030, others in 2042, but for gas, demand is always growing."
The development in the southern section of the North Field will have a capacity of 2 billion cubic feet per day, or 400,000 barrels of oil equivalent, and increase production of the field by about 10% when it starts production in five to seven years, he said.
That could coincide with the end of an anticipated period of relative oversupply in the global LNG market, allowing Qatar to sell the additional cargoes into a rising market. However, with Qatar re-joining the ranks competing to be the dominant supplier, alongside the United States, Australia and Russia, as well as Iran pushing to keep up with Qatar in their race to exploit North Field/South Pars reserves, there doesn’t look like being any shortages.