Qatar to increase LNG export capacity in bet on Asian demand

Qatar to increase LNG export capacity in bet on Asian demand

Qatar plans to further increase its liquefied natural gas (LNG) production capacity following the discovery of vast new gas reserves, as it looks to tap surging demand from China and other Asian nations.

The move, which comes on top of planned increases to output announced in recent years, will mean that its overall production capacity will rise almost 85 per cent from current levels before the end of the decade, according to an announcement on Sunday.

The plans mark a bet by the Gulf state that strong demand for the fuel will continue, with Asian economies switching from coal as part of efforts to cut carbon dioxide emissions. The move also comes as the US reviews its own LNG export plans to consider the impact on the country’s energy security and carbon footprint.

The plans will “take Qatar’s gas industry to new horizons”, said Saad Sherida Al-Kaabi, Qatar’s energy minister. 

Qatar is already one of the world’s largest suppliers of LNG — gas cooled into liquid form so that it can be piped on to ships for export — competing with Australia and the US for the top spot. 

It currently has capacity to produce about 77mn tonnes per annum (mtpa), but has announced plans