Qatar's LNG production growth plan; good market signal
Qatar's decision to increase its LNG output by 30 percent within seven years is a very positive signal for the market, Peter Coleman, chief executive officer of Australian Woodside said on Thursday.
Speaking at the 22nd World Petroleum Congress in Istanbul, of which Anadolu Agency is the global communication partner, Coleman said that this is a good signal for LNG buyers assuring reliable and sufficient security of supply for the future.
Saad Sherida Al Kaabi, chief executive of Qatar Petroleum announced on July 4 that Qatar plans to increase its LNG output from its huge North Field by 30 percent within seven years.
The increase in North Field production will boost the country's LNG output to 100 million tons per year from the current 77 million tons.
"It is more competition, we are used to competition and that is fine for us," Coleman said.
Responding to the question of the impact of Qatar's LNG production target on other projects, Seyed Mohammad Hossein Adeli, secretary general of Gas Exporting Countries Forum said that Qatar's aim to boost LNG production would not lead to the cancellation or postponement of projects of any other countries.
Adeli acknowledged that projects could be cancelled because of the market situation, and not because of Qatar's initiative.
According to official figures from the International Gas Union and the International Group of Liquefied Natural Gas Importers, Qatar exported 77 million tons of LNG in 2016.
While sales to the Asian region accounted for more than 60 percent of Qatar's total LNG exports, the country's top export destinations were Japan, South Korea, India, the U.K. and China.
Qatar, which is the world's largest LNG exporter, had a market share of 30.4 percent of global LNG as of 2016.
Australia is likely to emerge as the second largest LNG supplier globally in the coming years.