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Qatar to restart development of world's biggest gas field

Published 04/03/2017, 11:30 AM
Updated 04/03/2017, 11:30 AM
© Reuters.  Qatar to restart development of world's biggest gas field
  • Qatar plans to start a new development in the world's biggest natural gas field, as it seeks to boost export capacity by 2B cf/day, or ~400K boe/day, of gas.
  • The vast offshore field, which Qatar calls the North Field and Iran calls South Pars, accounts for nearly all of Qatar Petroleum's gas production and ~60% of its export revenue.
  • Ending its self-imposed moratorium on new gas projects and earmarking new volumes for exports means Qatar would be poised to reclaim the top spot among exporters of liquefied natural gas it expects to cede to Australia.
  • The move also signals Qatar’s confidence in the longevity of gas demand and its ability to remain a low-cost supplier in a market that has slumped amid a glut driven by output from U.S. shale and Australia.
  • Qatar's gas industry is dependent on partnerships with major international energy companies, including Exxon Mobil (XOM -0.6%), ConocoPhillips (COP -1.9%) and Total (TOT -0.6%).
  • ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG

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