Faisal Al Suwaidi, CEO and chairman of Qatargas says his country has played a vital role in transforming energy markets and is delivering gas to the world
Speaking to Oil & Gas Middle East from his Doha office earlier this year, Faisal Al-Suwaidi, chairman and CEO of Qatargas was upbeat and excited about the roll out of Qatar’s LNG industry.
“This is a fast-growing sector, especially for the hot economies of the world. China and India will have to import large quantities of gas. There are two main reasons. Firstly, they need to introduce this as part of their energy mix. Secondly, if they are to meet their Kyoto commitment, they will need to rely more on natural gas to reduce their emissions,” says Al Suwaidi.
The CEO says he expects LNG consumption will continue to rise by 10% a year for the next decade. LNG is cheaper (per thermal unit) than oil too. So why isn’t the whole world switching to LNG? Al Suwaidi is pragmatic: “I think that you will need all types of fuel to satisfy world demand in the future. I’m not sure that it’s a question of competition anymore; it’s a question of collaborating and making sure that we produce enough energy types to satisfy demand. It’s more about working together.”
The fact that governments the world over are making it a key feature in their energy plans is evidence enough that nations have to look in different places to meet their energy demands.
By 2010 Qatargas will be exporting 42 million tonnes per annum to markets in three continents, up from the 10 million tonnes that it shipped last year.
Al Suwaidi explains how the market has evolved.
“The main production areas or reserves are in Russia, Qatar, Iran and Canada. Until recently this was a regional business – the country would send gas next door to another country, or somewhere in the region. But, thanks mainly to Qatar and its partners’ efforts, we have globalised the gas market.”
Field management
“We know there is plenty of reserve there. It’s not a question of reserves. The North Field is still at 900 TCF [trillion cubic feet – two TCF is defined as a giant field],” states Al Suwaidi.
To make sure that the profit and energy of Qatar’s gas fields is properly harnessed, QP, the parent organisation, took a moratorium on further development of the North Field in 2005 amid fears that too fast an expansion could jeopardise the future of the supply.
“You could ruin the field in 10 years or you could properly manage it and the reserves will be there for the next 100 years. That is why QP brought a moratorium to take time out and study the field and make the right decision, says Al Suwaidi”.
Despite all of his weighty responsibilities, Suwaidi says his toughest job is keeping expectations in check. “Qatargas has more shareholders than other LNG companies, and 54 nationalities in our employment. So the most challenging thing is managing the expectations of so many shareholders and employees of different backgrounds. But saying that, it’s very interesting, fulfilling work.”
