Qatar well-positioned to enhance its role as world’s largest LNG supplier

Doha: Oil and Gas (O&G) companies worldwide, in 2020, collectively reduced their capex by 34 percent, slightly more than the initial 28 percent reduction following the price decline that started in 2014. Moreover, this year has already seen O&G capex stumble to levels not seen since 2004 due to cuts approved by operators and suppliers unable to lower prices, said Dr. Juan Vazquez, Managing Director & Partner at Boston Consulting Group (BCG).  

“Despite the turbulent low-CAPEX environment, the Qatari government has, however, demonstrated a degree of resilience that has failed to materialize in almost all geographies, with major O&G projects given the go-ahead. A true testament of this is Qatar is moving forward with a $29bn project to drive Liquefied Natural Gas (LNG) exports above 50 percent,” said Dr. Juan Vazquez. “Qatar’s resilience is undoubtedly a shining light amidst unclear global terrain, yet the new reality is far more complex than the challenging period of the early 2000s. Looking at the growth of demand, the anticipation of an emerging demand source that will exacerbate demand growth is non-existent,” he added.