International
Qatar’s LNG ramp up to see $35bn greenfield investments
The global oil and gas industry’s investments in new projects are set to double in 2019, with Qatar, the UAE and Saudi Arabia fueling growth. Qatar which has plans to boost its LNG capacity to 110 million tonnes per annum (million tpa) will require more than $35bn in greenfield investments, making it one of the biggest projects to be approved in the region over the last decade, according to Rystad Energy forecast.
Rystad is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to clients exposed to the energy industry across the globe.
Rystad Energy forecasts that projects involving more than $240bn in greenfield investments will be sanctioned in 2019, with almost 25 percent expected to come from the Middle East region.
The industry in the Middle East is aiming to ramp up gas production in order to meet rising regional demand, while also increasing oil output, Rystad Energy said recently.
Middle East greenfield investments are seen at about $56bn in 2019, more than six times the investments sanctioned in 2018. Investments in gas developments alone are expected to jump to $30bn this year from around $1.7bn in 2018.
The growth is primarily driven by offshore gas developments in Qatar and the UAE, as well as oil developments in Saudi Arabia.
According to Rystad Energy, investments in gas developments are picking up significantly. Gas development projects in Qatar and the UAE account for almost a third of the resources expected to be sanctioned next year, while Saudi Arabia’s oil expansion projects at Berri, Marian and Zuluf account for more than half.
Qatar plans to boost its LNG capacity to 110 million tonnes per annum (million tpa) and solidify its position as the top LNG producer globally. The UAE is prioritizing offshore gas projects to increase gas availability for domestic consumption and reduce its dependence on imported gas and LNG, looking to add 1.6 billion boe of resources. Rystad Energy expects these plans will require about $14.5bn in greenfield investments.
Saudi Arabia will develop around 9.8 billion boe of additional resources by investing just over $24.5bn in greenfield projects at the Marjan, Berri and Zuluf oilfields.
Meanwhile, the market intelligence news provider MEED noted yesterday crude rose above $66 a barrel in mid-February – its highest price since November . Progressing US-China trade talks also strengthened demand sentiment. Brent has remained above $60 a barrel during February after the Opec-plus deal that came into effect on 1 January began to yield results.
