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Wednesday, 5 April 2017

Qatar's Bold Move to Reassert Its Grip on Natural Gas Market - Bloomberg View

Qatar's Bold Move to Reassert Its Grip on Natural Gas Market - Bloomberg View:

"Half of the world’s biggest natural gas field is back in play. The Qatari moratorium on development of the North Field has been lifted, ending a frustrating 12-year wait for gas companies and customers. This move challenges rivals around the world and across the Gulf and broadens the tiny emirate’s political footprint, but it also speaks of domestic imperatives. Saad Sherida Al Kaabi, the chief executive of state-owned Qatar Petroleum, announced the plans for new development of the North Field on Monday. The southern part of the field, largely untouched, and which runs just to the country’s onshore, will be developed to produce 2 billion cubic feet per day gas, about 10 percent of the field’s current output. With 135 years of gas reserves at current production rates, Qatar can certainly afford to step up output. Doha shares the giant field with its neighbor Iran, where it is known as South Pars. Iran allowed Qatar a head-start in development, and only has about a third of the combined field reserves within its waters. But after lengthy delays due to sanctions and management problems, South Pars production is set to overtake that from the North Field by next March. The French oil company Total SA, involved on all sides, signed a preliminary agreement to develop a further phase of South Pars in November. Doha and Iran have diligently developed lines of projects along their shared border, to capture as many resources as possible. In Iran, though, the perceived loss of gas to Qatar has been a sensitive political issue. "

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