Despite an ongoing blockade by the neighbors of Qatar, its state oil and gas company plans to increase its daily production capacity to 6.5 million barrels per day of oil equivalent in eight years from the current 4.8 million barrels per day of oil equivalent, its chief executive told Reuters.
The United States will be the focus of this expansion, Saad al-Kaabi said un an interview, adding that “We are in Mexico, we are in Brazil, we are contemplating investing in the U.S. in many areas, in shale gas, in conventional oil. We are looking at many things.”
QP’s investments in the United States will likely be in liquefied natural gas: the company is a world leader in LNG exports and the majority stakeholder in the Golden Pass LNG terminal in Texas, where it partners with Exxon and ConocoPhillips.
The Golden Pass terminal is one of the largest globally, with a capacity to process 2 billion cu ft of natural gas daily, or 15.6 million metric tons of LNG annually. There are now plans to expand the terminal, and Al-Kaabi told Reuters that the final investment decision on the expansion will be made by the end of this year. Related: The Future Of U.S. Oil Relies On A Single Play
A group of six Middle Eastern countries led by Saudi Arabia cut off diplomatic relations with Qatar last June on allegations of support for terrorists and too-close relations with Iran. Qatar, however, has managed to weather the crisis, and now even the United States is trying to convince Riyadh to lift the blockade.
Qatar shares the biggest offshore gas field in the world with Iran. It has been instrumental in helping it to achieve its dominant position on the international LNG market. Last year, amid the blockade, Qatar decided to start expanding production from the North Field on the Qatari side, despite a previous moratorium and despite projections that the global LNG market will be marked by oversupply until about the mid-2020s.
By Irina Slav for Oilprice.com
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