RAS LAFFAN: Qatar inaugurated yesterday the first of four liquefied natural gas (LNG) plants due to start up this year, which should help the small state outpace the economic growth of Gulf Arab neighbors in 2009.
Rising gas exports will cushion Qatar, a Gulf Arab peninsula nation that is the world’s richest country in per capita income, from the double blow dealt to the rest of the region by lower energy prices and a global financial crisis.
The four new plants will double the capacity of the country, which is already the world’s largest exporter of LNG, or gas chilled to liquid form for export. “Qatar’s economic growth will be at least five times the regional average and the key driver is the development and monetization of its gas reserves,” said Simon Williams, regional economist at HSBC. “The projects coming to fruition this year will keep growth high and consolidate Qatar’s position as a leading supplier of LNG.”
A Reuters poll of analysts showed a median forecast for real GDP growth of 9.4 percent in 2009, much faster growth rate than its Gulf neighbors.
The new Qatargas LNG facility or train is the world’s biggest and can produce 7.8 million tons per year (tpy). Qatargas train four will take Qatar’s capacity to 38 million tpy.