The Gulf countries have the world’s third largest proven natural gas reserves.
QatarEnergy’s net profit surged 132% in 2021 to reach QAR 92 billion as the company moved toward dominance of gas exports, CNBC Arabia reported on Sunday, citing financial statements.
The energy giant’s overall revenues rose 50.1% last year to 124.7 billion QAR, while expenses rose 18% to 65.7 billion QAR, according to the report.
The encouraging numbers, an indicator of post-Covid-19 recovery, were attributed to increased sales of crude oil and natural gas. Qatar, on the other hand, posted a surplus of 4 billion Qatari Riyals in the first half of 2021 alone.
Market forecasts also point to another rise in the Gulf energy sector, boosting demand for Qatar gas amid the ongoing Russian invasion of Ukraine.
Several European countries have turned to Qatar in recent months to reduce Russia’s dependence on gas in its war with Ukraine. Europe receives 40% of her gas supply from Moscow, and nearly a third of shipments go through Ukraine.
These countries included Germany, Italy and Austria, the first countries in Western Europe to sign long-term gas supply contracts with the Soviet Union in 1968.
Coupled with the 2022 FIFA World Cup, Qatar’s growing demand for oil and gas is set to mirror the economic growth of the Gulf states. The International Monetary Fund expects the economy to expand 5.4% this year, to a surplus of about $45 billion.
In June, the World Bank revealed that Qatar’s Gross Domestic Product (GDP) is forecast to grow 4.9% this year, 4.5% in 2023 and 4.4% in 2024.
northfield expansion project
Qatar has the world’s third largest proven natural gas reserves and is seeking to dominate global liquefied natural gas (LNG) production through its Northfield expansion project.
The first phase of the project, the largest of its kind in the world, will see Qatar take LNG production from 77 million tonnes to 110 million tonnes by 2025, an increase of 43%.
The second part of the project, the largest of its kind, will increase Qatar’s LNG production to 126 million tonnes by 2027.
Last month, Qatar finished announcing partners for the first phase of the project, North Field East (NFE). Companies include Shell, ExxonMobil, ConocoPhillips, Eni and TotalEnergies.
QatarEnergy will begin researching potential partners in 2019 and production is expected to start by the end of 2025.
Discovered in 1971, Northfield covers an area of 9,700 square kilometers, of which 6,000 square kilometers is within Qatar’s territorial waters.
Production then began in 1989, when oil was Qatar’s main source of wealth.