‘Maxed Out’ Qatar LNG Is Unhappy With High Prices

‘Maxed Out’ Qatar LNG Is Unhappy With High Prices
Samsung Heavy Industries LNG Carrier (Photo: Business Wire)
Qatar, the world’s biggest exporter of liquefied natural gas, said it’s “unhappy” prices are so high but is producing at maximum capacity.
The comments from Energy Minister Saad Al-Kaabi on Monday come amid a crisis in gas markets, with prices rocketing as supply fails to keep up with soaring demand. Although Qatar is spending billions of dollars to increase LNG output, it has said it will struggle to boost production in the near term.
“We are maxed out,” Al-Kaabi said at an event in Doha, adding that volumes are currently around 80 million tons a year. “We’re just consistent, we’re producing what we can.”
The Persian Gulf state has the world’s lowest production costs thanks to an abundance of easy-to-extract gas, most of it contained in the giant North Field that extends into Iran.
Al-Kaabi reiterated the schedule for a planned expansion of North Field output, despite calls for an earlier ramp-up. Qatar aims to increase LNG output by around 50% by 2027, a project that will cost almost $30 billion.
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