In addition to Qatar’s energy revenue, World Cup organizers have said they expect an additional $17 billion from hosting a major football tournament.
Qatar’s fiscal surplus increased 12-fold to reach QAR 47.3 billion (equivalent to $12.8 billion) in the first half of 2022. This is due to the surge in energy income.
Oil and gas revenues rose 58% to QAR 150.7 billion in the first half, matching higher government spending on salaries and wages.
The Gulf State experienced a surplus of QAR 4 billion in the first half of 2021.
Qatar has benefited from a slowdown due to the Covid-19 pandemic and rising oil and gas prices brought on by Russia’s invasion of Ukraine.
Long-term contracts to supply the Gulf countries with liquefied natural gas (LNG) are often pegged to oil prices and are a major source of thriving revenues.
Projected by the International Monetary Fund, the country’s economy is expected to expand by 5.4% in 2022 alone, generating a surplus of around $45 billion.
EU countries are moving toward ending Russia’s dependence on gas and strengthening its economic response to Ukraine’s invasion, and are keen to secure energy cooperation with the oil-rich Gulf states.
Europe receives 40% of its gas supply from Moscow and nearly a third of shipments go through Ukraine.
Qatar’s LNG supply amid energy crisis
A memorandum of understanding was signed between Qatar Energy and the Ministry of Business, Energy and Industrial Strategy during Amir Sheikh Tamim bin Hamad Al Thani’s visit to the UK in late May. The agreement aims to strengthen energy cooperation between the Gulf countries and the UK.
The move is seen as a means of expanding cooperation in the areas of energy security, renewable energy and decarbonisation.
Commenting on Qatar’s role in potentially alleviating LNG supply concerns, Qatar’s Energy Minister Saad Sherida Al Kaabi said on 24 May: [and the price is] amplified by the Ukraine issue, ”he said.
Qatar has the world’s third largest proven natural gas reserves and is currently one of the largest suppliers of fuel to the UK, with huge LNG tankers operating at three UK LNG terminals. are transported by
When Emir Tamim visited Berlin in May, the two countries agreed to expand energy cooperation in a newly signed declaration. The agreement focuses on LNG and hydrogen trade. It is also necessary to arrange for working groups from Qatar and Germany to meet regularly to develop LNG and hydrogen trade.
Qatar’s Foreign Minister Sheikh Mohammed bin Abdurrahman al-Thani told German news outlet Handelsblatt that in 2024 gas will be sent to Berlin from the US Golden Pass LNG plant in Texas, in which Qatar Energy holds a 70% stake. Said he wanted to start.
Qatar’s energy sector
Gulf countries may become more dependent on hydrocarbons as the Northfield project begins production. The multi-billion scheme is the largest of its kind and aims to lift Qatar’s annual LNG production capacity from 77 million tonnes to 126 million tonnes by 2027. increase.
Qatar’s Gross Domestic Product (GDP) is estimated to rise to 4.9% this year due to a 10% increase in hydrocarbon exports and a multi-billion planned Northfield expansion project.
The unforeseen economic impact on the world caused by the war between Russia and Ukraine has had a particularly “positive” impact on Qatar’s economy.
“The impact of the war in Ukraine and associated sanctions on commodity markets is overall positive for the economy of Qatar, the world’s largest exporter of liquid natural gas,” said the World Bank (WB)’s latest global economic outlook says. reported.
According to the World Bank, Qatar’s economy is expected to expand this year and take the position of the fastest growing economy in the Gulf Cooperation Council (GCC) in 2023 and 2024.
The country’s GDP will grow by 4.9% this year, 4.5% in 2023 and 4.4% in 2024, according to the World Bank’s latest World Economic Outlook report released in June.
The World Bank reported Qatar’s GDP growth to be 4.9% in 2022, while global GDP growth is sluggish at 2.9%.