Qatar’s focus is on being the lowest cost LNG producer and then placing volumes in the market that are growing most, said HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi.
“Qatar is very disciplined in what it does about its LNG marketing,” al-Kaabi said at a session entitled ‘Energy shifts’ at the Qatar Economic Forum powered by Bloomberg yesterday.
“We don’t look at competition as competition… we look at how we can compete better with ourselves to be the lowest cost producer and then place volumes in the market that are growing most,” al-Kaabi said.
In terms of gas pricing, al-Kaabi said, “We don’t really discuss pricing per se but in general we go with the market – its supply and demand. When there are ample supplies, prices do come down and when there is a shortage, it goes up.
We are with the market.”
Qatar, he said, started decarbonising LNG a long time ago.
“As we are speaking, we are capturing or sequestering 2mn tonnes CO2.
And with the plans for the North Field Expansion (as announced in the past) by 2030, we reach around 9mn tonnes of Co2 that will be sequestered."
While talking about energy transition, al-Kaabi said it needs to be remembered that there are about 800mn to 1bn people who are currently deprived of the basic needs for electricity and basic fuels.
“So I think when we talk about transition, we also need to be cognizant of the fact that we are harming a lot of people by really not giving them enough supplies of basic needs that they may have and they may not be able to afford some of the things that we are talking about in energy transition.
“So transition needs time to develop – we need to be very responsible, very deliberate, and I think do it very responsibly.
"But also, we need to collectively do it as humanity and not be unfair in how we do it.”
Energy prices could probably go up with lack of enough investments in the oil and gas projects, he said.
And in the last couple of years, there has not been enough investments in oil and gas projects, al-Kaabi noted.
'Qatar is keen to
HE the Minister of Commerce and Industry and Acting Minister of Finance Ali bin Ahmed al-Kuwari affirmed the keenness of Qatar's wise leadership, represented by His Highness the Amir Sheikh Tamim bin Hamad al-Thani, to confront corruption in all its forms and types, and to ensure the highest level of transparency, governance and compliance.
During his participation at the Qatar Economic Forum, Powered by Bloomberg, he said that all the organisations are run to the best standards and that Qatar runs in a very transparent legal system.
On the current economic and financial situation, HE al-Kuwari said that Qatar's economic and financial situation is very good, adding that the budget was managed well. He noted that, despite expectations of a deficit, there was a surplus of QR 200 mn recorded in the first quarter, thanks to the recovery of oil prices and the efficiency of spending.
He added that given these facts, Qatar will be in a good position and with the expansion of oil and gas projects during the next few years, the Qatari economy will be in a better position.
With regard to the future prospects of the Qatari economy, HE the minister stressed that Qatar is moving forward in diversifying its economy according to a clear strategy emanating from the Qatar National Vision 2030. In this context, he said that Qatar adopts a policy of economic diversification by stimulating and empowering the private sector, attracting foreign direct investment, and developing and facilitating the business environment.