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Qatar’s national oil company, QatarEnergy, recorded a 58% jump in net income in 2022 to reach a record 154.6 billion riyals ($42.4 billion) amid the global energy crisis. The company mainly benefitted from higher gas prices, with prices 40% higher in 2022 than the previous year.
Qatar harbors big natural gas ambitions. Last week, QatarEnergy’s President and CEO, Al-Kaabi, declared that a full 40% of all new LNG that will come to the global market by 2029 will be from Qatar.
“Gas will always be needed as the cleanest fossil fuel for the base-load required for electricity production and for powering industrial and manufacturing factories. We have to have a balance between what we need for humanity and how we can manage it properly. And if you look at what we are doing in Qatar, we are increasing production to 126 million tons per annum (MTPA) and we have another 16-18 MTPA out of the U.S. coming online next year. We are doing it in the most responsible way as far as emissions are concerned with CO2 sequestration,” Al-Kaabi said during a “Leadership Dialogue” held as part of the 20th International Conference & Exhibition on Liquefied Natural Gas.
Last year, Australia emerged as the world’s leading exporter of LNG, shipping 82.0 million tonnes (Mt) of LNG2 valued at $63 billion, a new world record. That figure eclipsed 81.2 Mt exported by Qatar and 79.1 Mt exported by the United States. However, increasing regulatory scrutiny by the Australian government, including the possibility of gas intended for LNG projects being diverted into the domestic market, might limit Australia’s ability to maintain the lead. Lately, the Australian government has been intervening more aggressively in local gas markets. Last year, following the east coast energy crisis, the federal government toughened the Australian Domestic Gas Security Mechanism (ADGSM), which gives it more power to limit LNG exports.
Meanwhile, Europe’s purchases of U.S. LNG has lately dwindled, with June’s volumes clocking in at 4.15 million metric tons, down from 5.63 million tons in May. Europe’s gas inventories, including in the United Kingdom, have been rapidly increasing and have now hit 889 terawatt-hours (TWh), according to data from Gas Infrastructure Europe. Stocks are now +246 TWh +38% above the 10-year seasonal average, although the surplus has narrowed from +280 TWh +81% in March.
By Alex Kimani for Oilprice.com
Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.