Posted on October 17, 2018

Major changes on the supply and demand sides of the global Liquified Natural Gas (LNG) market require Qatar to adjust its strategy to maintain its position as the world’s leading LNG supplier, according to H.E. Dr Ibrahim Ibrahim, Economic Advisor at the Amiri Diwan.

H.E. Dr Ibrahim was speaking at Carnegie Mellon University in Qatar (CMU-Q) as a part of the Dean’s Lecture Series, a forum for leaders in business and government to discuss issues that affect the future of Qatar and the wider world. His Excellency was particularly pleased to speak to students in the audience: “The Dean’s Lecture Series is an opportunity to speak directly to the students about issues that are crucial to Qatar. As we develop Qatar’s long-term policies for LNG, it is crucial that young people understand the issues that we face. LNG policy has an enormous impact on Qatar and I am delighted to share the challenges and opportunities with young professionals who will one day make these policies themselves.”

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Michael Trick, dean of CMU-Q, noted the educational value of H.E. Dr. Ibrahim’s remarks: “Our students study science, business and technology, fields that all intersect with the oil and gas sector. His Excellency’s perspective will illustrate to them how the concepts they are studying are managed from a policy standpoint. We very much appreciate H.E. Dr. Ibrahim’s dedication to education and cultivating human capital.” In his remarks, His Excellency noted that the LNG sector faces challenges on the supply side, including the development of the shale gas industry sector in the U.S., the expansion of LNG supply from Australia, and the expected ascendance of the LNG positions of Russia and African countries. On the demand side, there is expected expansion of gas consumption in large economies such as China, India and Brazil.

H.E. Dr Ibrahim suggested that Qatar should adhere to the pillars of its LNG strategy to weather these challenges. These encompass a fully integrated production and delivery model, cost optimization in the LNG delivery model, and the leveraging of the Qatargas brand, which is associated with reliability, flexibility, loyalty, and a strict compliance to contractual obligations. His Excellency argued that, while the development of shale gas would have a negative impact on LNG prices in the short-term, the impact could be positive in the long-term, particularly for large gas suppliers such as Qatar. In other words, the development of shale gas would contribute to lengthening the duration of gas as a viable source of energy.

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Qatar should also intensify the development of its gas resources, His Excellency said, noting that the country has recently lifted the moratorium on expanding production from the North Field, and announced its intention to increase its LNG production capacity by 32 million tons. This announcement is expected to affect future projects from marginal suppliers, and the resulting capacity would allow Qatar to maintain its position as a leading world LNG exporter for years to come. Carnegie Mellon Qatar offers undergraduate programs in biological sciences, business administration, computational biology, computer science, and information systems. Graduates from CMU-Q are making a deep impact in Qatar and around the world, including within Qatar’s LNG sector.

For more information on the Dean’s Lecture Series, and to find out more about programs offered at Carnegie Mellon Qatar, please visit: www.qatar.cmu.edu

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