Doha will hedge against LNG dependence

Significance

Earlier in January, it awarded contracts to increase and sustain output at its main oilfield. Doha wants to dilute its overdependence on a single commodity and to extract value before global crude consumption declines.

Impacts

• Qatar Energy (QE) will use renewable electricity and carbon capture to reduce the carbon intensity of its oil production.
• Qatar will expand investments in upstream oil and gas assets overseas.
• Expansion in LNG production will unlock funds for further oil-related investment, even as international crude prices decline.