Qatar will expand its LNG output at home and abroad

Significance

State-owned QE is expanding its foreign hydrocarbon portfolio taking advantage of high gas revenues. It is also expanding its domestic liquefied natural gas (LNG) capacity, investing in maintaining oil output and increasing its downstream investments. Long-term deals with China and Germany have further diversified its client base.

Impacts

• Qatar will expand the domestic gas-based downstream sector, to add value and to stimulate wider local economic growth.
• The government will use LNG sales agreements and foreign exploration agreements as a tool of foreign policy.
• Greening its output will allow Qatar to mitigate to a degree the inevitable downturn in fossil fuel demand.