Qatar - Country Commercial Guide
Oil &Gas Field Machinery Equipment

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-11-18

Overview

The State of Qatar is the largest global exporter of liquefied natural gas (LNG), and the country’s exports of LNG, crude oil, and petroleum products constitute the majority of government revenue. Despite the government’s concerted diversification efforts under Vision 2030, Qatar’s earnings from its hydrocarbons sector still account for more than 50% of the country’s total government revenues. Significant opportunities exist in Qatar for U.S. companies offering products and services in the LNG production process, particularly since Qatar is currently undertaking a $30 billion North Field Expansion in the LNG sector.

Qatar possesses the third largest known reserve of natural gas in the world after Russia and Iran. Qatar has existing reserves of approximately 25 billion barrels of crude oil and 23.7 trillion cubic meters of natural gas.  It is also one of the world’s major fertilizer producers and top 15 oil exporting countries.  State-owned Qatar Petroleum (QP) oversees the oil, gas, fertilizer, petrochemicals and refining operations in the country and has multi-billion interests abroad. As a global leader in LNG extraction, Qatar’s national oil and gas company, QP is an important player both in Qatar and globally. QP has developed the sector through key partnerships with international companies. Since the onset of the Gulf Rift, QP has inked several long-term supply agreements with companies in Bangladesh, China, Vietnam, Thailand, and Pakistan and announced a flurry of overseas acquisitions in hydrocarbon blocks in Brazil, Oman, Mexico, South Africa, Argentina, Cyprus, Morocco, Mozambique, Namibia, Kenya, Guyana, and Cote d’Ivoire. Despite the ongoing land and air blockade imposed on Qatar in June 2017, Qatar has continued to supply LNG to the UAE, interrupted, through the Dolphin sub-sea pipeline, which provides 40% of UAE’s power generation. In 2019, QP invested $18 billion in the U.S. energy sector in the Golden Pass Terminal ($10 billion) and a petrochemical plant on the Texas Gulf Coast ($8 billion). Qatar’s natural gas production costs are among the lowest in the world, enabling cost-effective LNG and GTL Gas-To-Liquid (GTL) technology. The Pearl GTL plant is the world’s largest facility which produces 140,000 billion per day (b/d) and is notable as the first to integrate upstream natural gas production with a downstream conversion facility.

In May 2017, the 12-year moratorium on further developing LNG extraction from the North Field was lifted, allowing QP to proceed with the North Field LNG Expansion, which will increase LNG production in two phases. The first phase of North Field project is expected to increase capacity by 43% from 77 million tons per annum (mtpa) to 110 mtpa by 2025. The second phase, called the North Field South Project (NFS), will further increase the production capacity from 110 mtpa to 126 mtpa, a total 64% increase by 2027. This project includes the development of six LNG mega trains, creating significant opportunities for U.S. energy companies. QP is also planning to build a petrochemical complex that will have ethane capacity of 1.6 mtpa.  Qatar’s crude oil refining capacity is approximately 393.7 b/d and it is expected to increase to 484.7 b/d in the next three years.

Sub-Sector Best Prospects

  • Oil & Gas Field Machinery, Equipment and Supplies
  • Oil & Gas Field Services

Opportunities   

Qatar is poised to dramatically increase its LNG capacity and diversify products, projecting high growth in the coming years, despite globally depressed hydrocarbon prices.  QP’s focus on major contracts for the North Field expansion, together with the upcoming development of the petrochemical complex and ethane cracker facility, are likely to be key drivers of business activities in the energy sector.

Web Resources

Contact the Commercial Section of the U.S. Embassy