The State of Qatar contains the third largest natural
gas reserves and the largest non-associated gas field
in the world. Qatar has permitted substantial
foreign investment in the development of its gas fields
during the last decade and is expected to become the
world's top liquefied natural gas (LNG) exporter by 2007.
While Qatar is a member of the Organization of the Oil Exporting Countries (OPEC) and is a significant oil producer, the government has devoted more resources to the development of natural gas in recent years, particularly for export as liquefied natural gas (LNG). In 2006, Qatar reportedly surpassed Indonesia to become the largest exporter of LNG in the world.
Natural gas project:
The government celebrated twenty years of independence in September 1991 with the start of phase one of the North Field development project. The gas project, in a 6,000-squarekilometer field off Qatar's northeast coast, is supervised by Bechtel based in the United States and by Technip Geoproduction in France. The project marks a major step in Qatar's switch from a reliance on oil to gas for most of its revenues. The North Field is the world's largest natural gas field, and its exploitation will place Qatar in the top ranks of the world's gas producers. Natural gas from other fields provides fuel for power generation and raw materials for fertilizers, petrochemicals, and steel plants. With the expected depletion of oil reserves by about 2023, planners hope natural gas from the North Field will provide a significant underpinning for the country's economic development.
In the early 1970s, Qatar flared about 80 percent of the 16.8 million cubic meters of natural gas produced daily in association with crude oil liftings. In that decade, the country made progress in using its natural gas resources despite several setbacks. Whereas nearly 66 percent of onshore gas was flared in 1974, by 1979 that proportion had fallen to less than 5 percent. Two natural gas liquids (NGL) plants began operation in Umm Said in 1981. NGL-1 used gas produced from the Dukhan field, and NGL-2 processed gas associated with offshore fields. The combined daily capacities were 2,378 tons of propane, 1,840 tons of butane, 1,480 tons of condensate, and 2,495 tons of ethane-rich gas. However, repeated difficulties prevented the plants from coming on-line as scheduled and operating at full capacity. A massive explosion at the precursor of NGL-1 in 1977 killed six people and caused US$500 million in damage. NGL-2 had problems with the pipelines that connected the plant with offshore fields. The sharp drop in oil production in the 1980s meant that lack of feedstock caused plant shutdowns and underproduction. As a result, downstream (see Glossary) users suffered as well. In 1982 the two plants produced 500,000 tons of propane and butane-- slightly more than one-half of plant capacity. Condensate production lagged even further at 138,000 tons, or 40 percent of capacity. This gloomy outlook is mitigated to some degree by prospective development of the massive natural gas reserves in the North Field. Discovered in 1972 by the SCQ, the proven reserves of 4.6 million cubic meters (as of 1989) will be productive well into the 21st century. The Qatar Liquefied Gas (Qatargas) was established in 1984 as a joint venture with QGPC and foreign partners to market and export LNG from the North Field. Phase one of the US$1.3 billion project was officially inaugurated on September 3, 1991. By the end of the month, it was pumping 23 million cubic meters of gas a day from sixteen wells. The production is expected to meet the domestic demand of an estimated 17 million cubic meters a day. QGPC plans a massive development at Ras Laffan in association with the North Field project. In addition to a new port with LNG, petroleum products, and container loading berths, a methanol plant with an yearly production of 2,500 tons and a petrochemical complex with an annual production of 450,000 tons are planned. The development is scheduled for completion in the late 1990s.
In line with its desire to diversify the firms engaged in developing its resources, Qatar signed a letter of intent in February 1991 with Chubu Electrical Power in Japan to supply 4 million tons per year of North Field gas for twenty-five years, starting in 1997. This amount represents two-thirds of Qatargas's expected capacity of about 6 million tons per year.
URL: http://en.wikipedia.org/wiki/Natural_gas_in_Qatar
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