A file photo of QatarGas logo. Reuters.
Qatargas, the world’s premier LNG company, witnessed a sharp increase in its gas supply to the Middle East last year. In 2016 Qatargas’ exports to the region jumped to 13 percent compared to just 8 percent in 2015, while the total production in 2016 remained almost unchanged compared to the previous year level.
Its gas supplies to the Middle East has been registering a steady growth over the last few years. Qatargas’ exports to the region in 2012 was 6 percent of its total supply which has grown to more than double (13 percent) in 2016 with the year 2014 being an exception when the company served the region with only 2 percent of its total exports.
In contrary Qatargas’ market share to the Americas has seen a steep and steady decline during the period understandably as the region became self-sufficient in terms of energy. Qatargas’ exports to the region has declined to 1 percent in 2016 from 10 percent in 2012.
While energy-starved Asia continues to be the largest market for the company accounting for 61 percent of its total LNG exports. When compared with the previous year (2015), its exports to Asian market has slipped by just one percentage point.
Whereas, Europe, a region where the demand for energy is almost flat, received 25 percent of Qatargas’ exports in 2016, which was 2 percentage points lower compared to 27 percent in 2015. The company’s exports to Europe in 2012 stood at 30 percent.
However, despite sharp decline in energy prices and other global economic challenges faced by Qatargas, the company maintained its operational resilience, including the level of annual production and other key performances.
Qatargas is committed to investing in cutting-edge technologies and innovative projects to maintaining its leading global position as a trusted energy supplier. The LNG production of Qatargas in 2016 remained relatively unchanged.
The world’s leading supplier of clean energy produced 41.4 million tonnes (mtpa) of LNG last year, witnessing a marginal decline of 0.55 percent compared to 41.66 mtpa in the previous year (2015), according to recently released Sustainability Report 2016.
“With the recent global economic climate leading to sharp decline in oil prices, Qatargas was able to maintain operational resilience through its long-term investments in sustainable business and industrial practices. We have not only withstood the worst of the economic downturn, but have maintained the stability and reliability of our operations,” Khalid bin Khalifa Al Thani, CEO of Qatargas noted in the report.
“Moreover, Qatargas has decided to continue pursuing a proactive approach to invest in new technologies, partnerships, innovative projects, assets, and our people. This will positively impact our sustainable performance in the future.”
Last year, Qatargas invested a substantial amount of resources towards developing the M-type Electronically Controlled – Gas Injection pilot project. The technologically sophisticated project, jointly undertaken with its shipping partner, successfully demonstrated that traditional carriers can be converted to run purely on LNG.
Qatargas inked two MoUs in 2016 with leading global shipping and energy companies to help develop LNG as a marine fuel. “A shift towards LNG by the shipping industry can help mitigate human impact on global climate change while simultaneously assisting Qatargas’ stable economic growth resulting from the rising demand for LNG as a marine fuel,” noted Al Thani.
He also noted: “This year, we managed to achieve an industry first – a multiport LNG delivery, driving customer satisfaction to new heights. Finally, we celebrated the beginning of operations at Laffan Refinery 2, our newest asset. With the refinery now operational, Qatargas is strategically positioned for successful growth with robust infrastructure.”
Despite challenges, Qatargas also managed to achieve many other set targets aligned with its 2020 Vision and Direction Statement. Most notably, the company exceeded the targeted reduction per unit cost of production.
