Qatar this year will sign record volumes of long-term liquefied natural gas (LNG) offtake contracts, the country's energy minister said on Tuesday at a conference in Vancouver.
About 40% of new global LNG output will come from Qatar by 2029, said Minister of Energy Saad al-Kaabi at the LNG 2023 conference. The country last year approved expansion projects that will boost its LNG output by 64% to 126 million tons per year by 2027.
"Some people say by 2050 you do not need gas anymore. I say you need more gas. You need gas as a baseline to support wind and solar since the sun does not shine all the time and the wind does not blow all the time," said al-Kaabi.
Demand for the super cooled gas sky rocketed following Russia's invasion of Ukraine, giving Qatar and the United States significantly larger roles in supplying gas to Europe.
Al-Kaabi said the 40% estimate was based on Qatar's domestic LNG production and a U.S. joint venture with Exxon Mobil (XOM.N) that will add between 16 and 18 million tonnes per annum (MTPA) when complete.
QatarEnergy is betting that the world will continue to require LNG for the long term, but it must be produced at a price that is affordable and with a reduced impact on the climate, al-Kaabi said.
It is important for QatarEnergy that the price negotiated with customers "is fair and sustainable" for both parties, al-Kaabi said.
