World oil companies incline persuade Qatar to increase gas production

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ExxonMobil, Shell and Total met with Qatar emir, Sheikh Tamim bin Hamad Al Thani, after imposing sanctions against Doha.

According to sources in the industry, executives from ExxonMobil, Shell and Total expressed their readiness to help Qatar bring the annual production of liquefied natural gas (LNG) to 100 million tons in the next five to seven years.

All the above-mentioned companies declined to comment.

On Tuesday, Qatar announced its intention to increase production of liquefied gas by 30 percent, seeking to protect its market share against the backdrop of rising shale gas supplies from the United States. Qatar, the largest LNG supplier and second largest gas exporter after Russia in the world, has one of the lowest production costs.

Exxon, Shell and Total investments in Qatar are mainly related to gas liquefaction projects for tanker shipments to markets where pipeline transportation is unprofitable.

Qatar can increase LNG production by 10 million tons per year, and do it fairly quickly and without much expense by optimizing and upgrading existing facilities, the source said.

The increase in LNG production will require the construction of new terminals, which means huge investments, and the world energy companies are ready to offer them.