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Qatar: 16% growth in 2010, 1/3 LNG capacity growth and is to supply Dubai with LNG 26, January 2010

Posted by thegulfblog.com in Qatar, The Emirates.
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For a small country, Qatar continues to put out outstanding figures [though I realise that these things are not related…]. As the title of the article suggests, their economy is predicted to grow by 16% in 2010. Their LNG production is expected to grow from 54 millions tonnes per year to 77 million tonnes by the end of the year. Also it has been announced that Qatar will supply Dubai with up to 37 billion tonnes of LNG per year starting soon. Why Dubai isn’t getting its gas from its sister state, Abu Dhabi, is a mystery…or not.

Qatar not to sell gas to Israel 1, November 2009

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The Qatar Emir’s economic adviser, Dr. Ibrahim Al Ibrahim, assured a recent television audience that Qatar has no plans to sell gas to the Israeli entity. Perish the thought that mutual trade and cooperation might ever be conducive to promoting understanding or finding a common ground.

Qatar and Iran: on top in Middle East’s gas shortage 2, June 2009

Posted by thegulfblog.com in Kuwait, LNG, Middle East, Qatar.
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Irony, schadenfreude, poor management or just life, call it what you will but there is going to be a critical shortage of gas in the Middle East according to the FT. Such a notion goes against the grain of popular perceptions of the Middle East as region, for if the region is know for anything it is for its oil. People might assume, therefore, that because of the plentiful supplies of one carbon-based fuel, that there might be equally plentiful supplies of another. To a fair degree such an assumption is correct. Qatar and Iran are two of the top three countries in the world by proven gas supplies. Other Middle Eastern countries have more modest but still far from insignificant supplies. Saudi Arabia has over 7 trillion cubic feet (tcf) of gas supplies at 4% of the world’s proven reserves, the UAE has over 6 tcf of reserves at 3.4% of the world’s supplies and Kuwait has nearly 2 tcf of proven reserves. Compared to their oil reserve equivalent, these supplies are fairly paltry, but compared to, for example, their populations (around 27, 4.6 and 2.6 million respectively) they ought to be easily sufficient. Yet this is clearly not the case if the judicious and sober FT are declaring their need to be ‘critical’.

There are various reasons as to why most GCC states find themselves in this somewhat perplexing situation. Many of these countries have, as the article’s author Andrew England states, a highly escalating demand for energy spurred on by burgeoning populations spending the wealth accumulated in the recent oil-fueled boom. Furthermore, the myopia that the oil fueled boom seems to have instilled on the region in terms of a lack of significant investment in any other industry seems to have further exacerbated issues. Gas, it is now starkly evident, is crucially needed “for power generation, desalination plants and to provide feedstock to the energy intensive industries they have been seeking to lure.” The problems are particularly acute in the summer months when demand for AC is at its peak.

Whilst the recent economic troubles that have afflicted the region have momentarily taken the edge off the gas needs with its dampening effects on demand overall, this is but a temporary phenomenon and “the medium and long-term outlook remains critical.”

Such a situation is, of course, not that bad for Qatar and Iran. Both these countries, sitting atop mountainous stores of gas and sharing the world’s largest gas field, gain extra strategic importance. Kuwait and Qatar are currently in talks over a 5 year supply deal worth around 1.4 million tonnes of LNG per year. Yet, as England notes with an interview with Qatar’s oil and gas minister, Qatar will not necessarily sell their gas to their neighbours for “at the end of the day I [the Minister]  am concerned about what is the best revenue for the country…I’m not in a social security game.” Qatar already has the Dolphin pipeline sending gas to the Emirates and then on to Oman. This can be seen through a pessimistic or an optimistic prism. Either Doha can now exert more authority over the Emirates and Oman or this closer reliance will bring the countries closer together. A Russian-Ukrainian style threat to turn off of the pipes is highly unlikely, outwith extreme provocation or a severe deterioration of relations. And in much the same way, the countries are different, independent and competitive enough to avoid some kind of harmonious new relationship. As usual, the practice will most likely be somewhere in the middle with all concerned knowing that a touch more power has just been ceded to Qatar. Expect their attempts to diversify their supply or seek nuclear technology to increase.

Picture from LNGpedia

Original FT article

China’s LNG Terminals 2, June 2009

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China LNG TerminalsHat Tip: LNGpedia

Article catch up 29, May 2009

Posted by thegulfblog.com in Bahrain, China and the ME, Egypt, French IR, LNG, Middle East.
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– Interestingly, it is being suggested that Turkey might be acting as an intermediary for America in persuading Kyrgyzstan to retain their US base.

– MEI blog and Marc Lynch on Obama scheduling a visit to Riyadh just before he gives his much-hyped speech in Cairo.

Commentary on Bahrain’s new proposals to augment migrant worker’s rights being significantly watered down by business interests.

Bomb at Iranian mosque in the run up to the elections.

– Thailand building LNG regasification facilities to receive LNG from the Middle East.

– Yemen are about to join Qatar et al in the exporting of LNG.

– On the Middle East’s expected increase in defense spending.

– Marc Lynch on the importance of Arab opinion polls.

– MEI blog on the Iranian un/blocking of Facebook and Microsoft’s bizarre decision to ban Messenger in various embargoed countries and on the French base in the UAE.

– China is now the largest exporter to the Middle East having over-taken the US. Hat tip: Silk Road Economy via the Arabist.

– On the possibility of China creating its own Al Jazeera.

– On the surprisingly close Israeli-Iranian relations below governmental level. See also ‘Treacherous Alliances.’

Qatar’s LNG: a brief overview 27, May 2009

Posted by thegulfblog.com in Iran, LNG, Qatar.
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Here are a few salient facts about Qatar’s LNG production today and in the future.

Qatar produces:

– 33 million tonnes per year of LNG  in 2008

– 60 million tonnes per year of LNG in 2009

– 70 million tonnes per year of LNG by 2012

– This 2012 target will amount to roughly 30% of the world’s LNG needs

– This will make them far and away a proportional bigger supplier of LNG than Saudi Arabia is of oil who supply around 12-13%

– One full cargo of the largest Qatari tanker is sufficient to heat every UK home for a day

– Qatar shares the world’s largest gas field with Iran – some 6000 square meters

– Current estimates suggest that it holds around 900 trillion cubic feet of gas

– It is expected to last for more than 100 years

– Qatar Petroleum are believed to have invested around £40billion in oil and gas in 2008-2010 alone


Nadim Kawach © Emirates Business 24/7 2009

LNGPEDIA is an excellent aggregation source for LNG related topics.

The BP statsitical review is an unbeatable source for energy data.

Adding Value in the LNG Supply Chain‘ Bjorn Moller. ONS Conference.  Stavanger, August 24, 2006

Article catch up 25, May 2009

Posted by thegulfblog.com in Kuwait, Lebanon, LNG, Middle East, Qatar.
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Here’s a selection of the weekend’s best articles that caught my attention:

  • Brian Ulrich has an excellent article, summarised on this blog and in full on the Arab Media and Society journal, discussing blogs as but the latest communicative media in the Middle East. It is wide-ranging, interesting and well worth a read.
  • The Arabist quotes Guy Gabriel at the Palestine Chronicle and his trawl of all available media stories concerning the supposed Israeli attack on the arms convoy in Sudan.
  • Der Spiegel highlights new evidence that the assassins of Hariri in Lebanon was actually Hezbollah’s special forces and not directly Syrian backed…But many in the media, including Joshua Landis are less than convinced about this story’s veracity. He eloquently sketches out the (many) reasons for his scepticism here.
  • Foreign Affairs has an article discussing the various lobby groups operating in Washington DC.
  • The FT on the great scramble for African land:  “they’re almost giving it away.”
  • Qatar’s ever closer investing, importing and exporting relationship with Indonesia.
  • The Economist on Kuwait’s elections and future difficulties.

Qatar articles 19, May 2009

Posted by thegulfblog.com in Qatar.
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Some recent articles on Qatar:

  • LNG supply to be mopped up by thirsty China, according to Qatar’s Energy Minister.
  • A good summary article of the LNG UK-Qatar relationship which will, among other things, reduce Russia’s strangle-hold on European gas supplies.
  • A far more detailed overview of Qatar’s LNG in MEED.
  • Germany are to sell main battle tanks to Qatar.
  • ‘The Doha Deceleration’  – Qatar’s ‘Doha Centre for Media Freedom’ and UNESCO have made something of a (relatively) bombastic statement on the importance of media freedoms.
  • The opening of a Japanese school in Doha.
  • A very good Economist article on the limits of freedom facing Qatar’s ‘Doha Centre for Media Freedom’. It focuses on its controversial French director, Robert Ménard, and his apparent desire to either poke, prod and push the powers that be in Qatar into sacking him or to really test the boundaries of Qatar’s press freedom.
  • Qatar set to reopen its North Field after a long moratorium.

Royal visit for opening of LNG terminal 12, May 2009

Posted by thegulfblog.com in LNG, Qatar.
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LNG Tanker

Members of the British and Qatari royal families will visit South Wales to celebrate the opening last month of a new Liquefied Natural Gas (LNG) terminal. Eventually, it is expected that the UK will receive up to 20% of its gas needs from Qatar via South Hook and Port Talbot in Wales. In an excellent summary, the key paragraph from the BBC states that:

The UK is now the world’s fastest growing market for imported gas and now has a direct link with Qatar, the world’s biggest LNG exporter.

There’s that phrase again… 6, October 2008

Posted by thegulfblog.com in China, Qatar.
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I just read a news article which slipped past me some months ago, about the Qatari state visit to Beijing back in April. During this visit the countries ties up lucrative and important contracts regarding Liquefied Natural Gas (LNG). Qatar is currently the world’s largest exporter and China, ever desperate to get its hands on more fuel, has just signed two important contracts for exportation and development. In the report was the immortal phrase, inserted in to countless such articles, where the nation dealing with China make clear (or have made clear for them) their undying, unyielding, unswerving and fervent commitment to the one China policy.


Chinese, Qatari firms ink gas deals

<!–enpproperty 2008-04-11 07:21:54.0Li XiaokunChinese, Qatari firms ink gas dealsQatar, gas1158960National2@webnews/enpproperty–>

By Li Xiaokun (China Daily)
Updated: 2008-04-11 07:21

China’s two largest owners of liquefied natural gas (LNG) terminals Thursday inked deals with Qatargas Operating Co for LNG importation – the first such deal between China and the world’s top LNG exporter.

Qatargas will sell 2 million tons of LNG a year to China National Offshore Oil Corp (CNOOC), currently China’s sole LNG importer, starting from next year, according to the agreement.

Qatargas and its partner Royal Dutch Shell will sell 3 million tons of LNG a year to PetroChina from 2011.

CNOOC, China’s third-largest oil company, also announced Thursday it will open 17 offshore blocks for joint oil exploration with foreign companies this year.

The two agreements were signed between the companies’ chairmen at the Great Hall of the People Thursday, in the presence of Premier Wen Jiabao and visiting Qatari Prime Minister Shaikh Hamad bin Jassim bin Jabr Al-Thani.

The two countries also inked three memoranda of understanding to enhance energy cooperation between the two governments and relevant companies, and expand bilateral cultural cooperation between now and 2010.

During a one-hour talk ahead of the signing ceremony, Wen said energy cooperation between the two nations has made encouraging breakthroughs recently.

He expressed hopes that the two sides can expand cooperation on energy, infrastructure construction and other fields, including culture, education, media, aviation and tourism.

Qatar attaches great importance to Sino-Qatari relations, resolutely adheres to the One-China policy and wished Beijing a successful Olympics, Jabr Al-Thani said.

“China has held many large-scale activities splendidly before. I believe the Beijing Olympics will be as outstanding as the previous ones here,” he said.

With this year marking the 20th anniversary of the establishment of bilateral ties, Jabr Al-Thani said Qatar would like to join hands with China to expand bilateral relations.

The Qatari prime minister arrived in Shanghai on Sunday for a weeklong official visit – the highest-level one by a Qatari leader in seven years.

He was scheduled to travel to Hainan province this morning to meet President Hu Jintao and other foreign heads of state, and deliver a speech at the opening ceremony of the Boao Forum for Asia on Saturday afternoon.