Market Intelligence
Petrochemicals Solar Energy Petroleum Refineries Qatar Middle East Trade Development

Qatar - Energy Efficiency and Sustainability Initiatives - Carbon Footprint Reduction

Qatar – Energy Efficiency and Sustainability Initiatives - Carbon Footprint Reduction.

Qatar is one of the largest global exporters of liquefied natural gas (LNG), which generates the majority of Qatar’s national revenue. QatarEnergy (QE), formerly Qatar Petroleum (QP), is the state-owned company that operates all oil and gas activities, including exploration, extraction, production, refining, transport, and storage. QE aims to become the world’s LNG producer by 2030, with an increased strategic focus on energy efficiency and sustainability. 

In August 2021, QE announced its intent to reduce its Green House Gas (GHG) emissions by 25 percent by 2030 and allocated $170 million to this effort.  This announcement was made in conjunction with the first update of the 2015 Nationally Determined Contribution (NDC) targets in the United Nations Framework Convention on Climate Change (UNFCCC), which focuses on flare and methane reduction efforts. Such decarbonization initiatives are expected to generate significant opportunities for U.S. companies offering efficient products and services in the LNG production process.

o    For more information about this opportunity, please contact: 
Golda Agnazata
Commercial Specialist
Golda.Agnazata@trade.gov 

Background

Over the last four decades, Qatar’s carbon emissions have increased dramatically as its LNG sector has grown. By 2020, Qatar ranked among the highest in the world in terms of carbon dioxide emissions per capita, reflecting a six-fold increase since 1970. Qatar’s small population and its massive industrial LNG production facilities directly contribute to the disproportionate size of its carbon footprint.  

With an increased focus on sustainability and climate change issues in recent years, Qatar Petroleum was renamed QatarEnergy (QE) in October 2021.  Qatar developed a comprehensive sustainability plan that aims to enhance environmental friendliness and efficiency in both existing facilities and those under development as a part of the country’s North Field LNG Expansion.  QE has been exploring research studies in carbon capture and the global supply chain. It also began investing in renewables by launching Qatar’s first solar power plant, in an effort to diversify Qatar’s energy portfolio. Detailed information about this framework is available in QE’s sustainability report (hyperlink included). QE points to its economically extractable LNG as an important, more environmentally friendly transitional energy source globally as the world shifts to renewables.  

In addition to the above-mentioned energy efficiency and sustainability plans, and in line with Qatar’s ambitious plan to be the world’s LNG producer by 2030, Qatar reaffirmed its commitment to developing the North Field LNG Expansion, which will increase LNG production in two phases. The first phase of the North Field project is expected to increase capacity by 43 percent from 77 million tons per annum (mtpa) to 110 mtpa by 2026. The second phase, called the North Field South Project (NFS), will further increase the production capacity from 110 mtpa to 126 mtpa, reflecting a 64 percent increase by 2028. This project includes the construction of six LNG mega trains, which will create significant opportunities for U.S. energy companies to plug in value-added propositions of clean, green, and smart technologies to these new facilities. 

Sub-sectors with strong market potential include the following areas: 

•    Clean technologies 
•    Green energy
•    Carbon capture and storage
•    Renewables (particularly solar)
•    Energy generation and storage
•    Sustainable water, waste, and materials
•    Low emission transportation, including electric vehicles (EV)
•    Compressed Natural Gas (CNG) 
•    Smart solutions, including artificial intelligence (AI)

Next Steps for the U.S. client
U.S. companies offering quality solutions for these opportunities should work with Commercial Specialist Golda Agnazata (Golda.Agnazata@trade.gov) at the U.S. Commercial Service in Qatar to explore matchmaking, market research, and other assistance. 

As trade shows resume following the Covid-19 pandemic, U.S. firms interested in energy efficiency and sustainability should also reach out to CS Qatar to note participation in trade shows in the oil and gas, energy, and environmental technologies sectors.  CS Qatar often recruits delegations to key shows and can introduce U.S. company executives to Qatari industry representatives and government officials at these shows.

Additionally, U.S. firms should closely monitor the QE tender website (hyperlink included) for upcoming projects related to oil and gas industry.

05/31/2022