Qatar’s plans to raise liquefied natural gas capacity to 126 million tonnes per year could even see an additional boost, according to Qatar Petroleum’s chief executive Saad al-Kaabi.
State-owned QP is currently working on the first phase of the North Field expansion project to raise the country’s LNG production capacity from 77 million to 110 million tonnes per year by 2025.
The second phase of the project would add an additional 16 million tonnes of capacity by 2027.
“We are going full steam ahead with the North Field expansion projects”, Saad al-Kaabi, who is also Qatar’s energy minister, said on Thursday during a webcast organised by the U.S-Qatar Business Council.
He said that the final onshore commercial bids for the expansion project will be received by September and that contracts will be awarded by the end of the year.
The world’s largest energy companies have been heavily affected by the demand slump caused by the coronavirus pandemic forcing them to slash spending and output.
QP will not reduce its LNG exports due to the weaker demand but will slash spending, according to Kaabi.
“In such a scenario of forced production curtailment because of price, many other producers will be forced to shut down before Qatar due to their high production cost, therefore there is absolutely no way that we would curtail production”, he said.
Kaabi said that QP will be reducing its capital and operating expenses by 30 percent in June.
He said that being a “low-cost producer” will help Qatar withstand lower gas prices, and that the state-owned company was not considering cutting production at the time being.
“In fact, we are going to expand and even produce more than the planned 126 million tons per annum if and when that becomes possible”, Kaabi said.