Overview
The State of Qatar is one of the largest global exporters of liquefied natural gas (LNG). Qatar possesses the third largest known reserve of natural gas in the world after Russia and Iran and has existing reserves of approximately 871 trillion cubic meters of natural gas, 13 percent of the world’s proven natural gas reserves. Crude oil production is at approximately 1.746 million barrels per day, making Qatar one of the top 15 oil exporting countries and one of the world’s major fertilizer producers. Qatar is undertaking a $30 billion North Field Expansion (NFE) project in the LNG sector. The market is vibrant and there are significant opportunities for U.S. companies offering products and services in the LNG production process.
Qatar’s export of LNG, crude oil, and petroleum products constitute most of the government’s total revenue for the past several years. In 2022, the hydrocarbon sector contributed around 37 percent of Qatar’s GDP. The oil and gas industry is still the most active and bullish sector in the country and will likely continue to play a leading role in the future. This sector also includes the most significant export and investment opportunities for U.S. companies over the past year, both in terms of dollar value and strategic interest. Considering the ongoing construction and development of the NFE, with the expected 64 percent increase of 2023 production by 2028 when both phases will be online, there will be more potential opportunities for interested U.S. companies.
Qatar’s state-owned oil and gas company, QatarEnergy, oversees the oil, gas, fertilizer, petrochemicals, and refining operations in the country. As a global leader in LNG extraction, QatarEnergy is an important player in Qatar and globally, with billions invested overseas. QatarEnergy developed the sector through key partnerships with international companies and has solidified several long-term supply agreements with companies in Bangladesh, China, Japan, India, Korea, Pakistan, Singapore, Thailand, Vietnam, and Sri Lanka. Europe is a growing LNG import destination for Qatar through its regasification terminals located in Italy, the United Kingdom, France, Belgium, and Germany.
QatarEnergy has announced several overseas acquisitions and investments in hydrocarbon blocks in Brazil, Oman, Mexico, South Africa, Argentina, Cyprus, Morocco, Mozambique, Namibia, Kenya, Guyana, and Côte d’Ivoire. In 2022, QatarEnergy also acquired hydrogen blocs in Egypt and Canada. Despite the Gulf Rift from June 2017-January 2021, Qatar continued to supply LNG to the United Arab Emirates (UAE) through the Dolphin sub-sea pipeline, which provides 40 percent of the UAE’s power generation. In 2019, QatarEnergy invested a total of $18 billion in the U.S. energy sector, in the $10 billion Golden Pass LNG Terminal and an $8 billion petrochemical plant on the Texas Gulf Coast. Qatar’s natural gas production costs are among the lowest in the world, enabling cost-effective LNG and Gas-To-Liquid (GTL) technology. The Pearl GTL plant is the world’s largest facility of its kind and is notable as the first to integrate upstream natural gas production with a downstream conversion facility.
In May 2017, the 12-year moratorium on LNG extraction from the North Field was lifted, allowing QatarEnergy to proceed with the NFE project, which will increase LNG production in two phases. The first phase of the NFE project is expected to increase capacity by 43 percent from 2023’s 77 million tons per annum (mtpa) to 110 mtpa by 2026. The second phase of NFE, called the North Field South Project (NFS), will increase the production capacity from 110 mtpa to 126 mtpa, a 64 percent increase by 2028. In June 2022, the Government of Qatar selected partners for the NFE project which includes the development of six LNG mega-trains. QatarEnergy also awarded the construction of a petrochemical complex that will have 2.1 mtpa ethane capacity which is expected to start its production by 2025. Potential follow-on opportunities are outlined below under “Opportunities”.
The key business drivers for the oil and gas industry in Qatar are evolving in three segments: upstream, midstream, and downstream. U.S. companies should consider providing products and services that focus on exploration and production, engineering, procurement, and construction (EPC), automation and systems, drilling, pipeline, oilfield or well servicing, and refinery.
Sub-Sector Best Prospects
- Oil & Gas Field Machinery, Equipment, and Supplies
- Oil & Gas Field Services
- Green/Clean Energy Technology
- Automation/Smart Digital Technology and Renewables
Opportunities
Qatar is poised to dramatically increase its LNG capacity and diversify products, projecting high growth in the coming years. QatarEnergy’s focus on major contracts for the North Field Expansion, together with the upcoming development of the petrochemical complex and ethane cracker facility, are likely to be key drivers of business activities in the energy sector. To maximize such opportunities, it is important to take part in energy-related events and trade shows and to connect with the resources that are readily available with the U.S. Commercial Service.
Trade Shows
Offshore Technology Conference (OTC) 2024
May 6-9, 2024
Houston, Texas
International Conference and Exhibition on Liquified Natural Gas
2026
Doha, Qatar
Resources
Contact the Commercial Section of the U.S. Embassy for more information.