First Phase of LNG Production to Start in Qatar

According to analysts, the project is anticipated to earn $40 billion in income upon the first phase's completion by 2025.

After notifying all project partners at North Field East (NFE), Qatar can now conduct the first phase of the North Field Expansion project, according to a report from the Gulf state's news agency (QNA) on Tuesday.

According to experts, QatarEnergy will be able to announce the firms for the second phase by 2023 thanks to the agreements it struck with the prior companies for the first phase.

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As part of the first phase, Qatar would boost its LNG production from 77 million tonnes to 110 million tonnes by 2025, a 43 percent increase. The second and largest component of the project will increase Qatar's LNG output to 126 million tonnes by 2027.

In order to complete the $28.75 billion NFE project, QatarEnergy signed contracts with five international businesses.

 The first business chosen to collaborate with Qatar Energy on the massive North Field East LNG Project is TotalEnergies.

The first firms to be named are Shell, ExxonMobil, ConocoPhillips, and  Eni.

With the goal of starting production before the end of 2025, QatarEnergy started investigating possible partners in 2019.

The timing of the company announcements, according to economist Nasser Al Khalidi for QNA, comes at a crucial moment for the energy sector as gas prices are rising as a result of the ongoing conflict between Russia and Ukraine.

According to Al Khalidi, the project will create prospects for additional investments in numerous local sectors and, given that it will boost Qatar's budget income, the market will eventually return to equilibrium.

According to QNA, when the project's first phase is finished by 2025, it will bring in an estimated $40 billion in revenue.

The North Field, which was found in 1971, has a total size of 9,700 square kilometers, 6,000 of which are in Qatar's territorial waters. Then, in 1989, the production began, at a time when Qatar's wealth was primarily derived from oil.

Qatar's proved reserves have steadily grown from 2,265 billion cubic meters in 1981 to 8,500 billion cubic meters in 1996 since the discovery of natural gas. In 2010, the nation achieved a significant milestone when its LNG production hit 77 million tonnes annually, making it the world's largest LNG producer.

The Paris Agreement, which seeks to reduce emissions in order to minimize global warming, is in accordance with the use of LNG.

In keeping with Qatar's National Vision 2030, the country has issued a national Climate Change Action Plan in 2021 to cut its greenhouse gas emissions by about 25% by 2030.

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