Qatar Petroleum (QP) is calling for bids for offshore gas exploration to be submitted in early 2011, people familiar with the auction said. The company is the state run energy company in the country with the world’s third largest gas reserves. Bids for rights to explore for gas off the coast of the Arabian Gulf state in an area called block A are due on January 9.
The country, which is the world’s biggest exporter of liquefied natural gas and is the single largest supplier of liquefied natural gas, plans to increase gas output to 23 billion cubic feet a day by 2014 to boost exports and provide fuel for domestic industries and power plants.
Qatar has offered exploration rights to three companies over the past two years. A joint venture between Royal Dutch Shell and China National Petroleum Corp signed a 30 year exploration and production sharing agreement in May for block D. The deal, which includes a five-year exploration period, covers onshore and offshore exploration for natural gas and its production in Qatar Block D. Cnooc Ltd of Hong Kong signed a 25-year agreement with Qatar Petroleum in August 2009 to search for gas in a separate offshore block.
The country expects by early next year to increase its annual capacity for exporting liquefied natural gas to 77 million tons, equivalent to about 3.75 trillion cubic feet of pipeline gas, with the completion of its final planned liquefaction plant. Qatar's future growth may lie in construction of sub-sea pipelines to oil-rich neighbours, which are desperate for gas for energy-intensive economies but reluctant to pay market rates for it.
The country, which is the world’s biggest exporter of liquefied natural gas and is the single largest supplier of liquefied natural gas, plans to increase gas output to 23 billion cubic feet a day by 2014 to boost exports and provide fuel for domestic industries and power plants.
Qatar has offered exploration rights to three companies over the past two years. A joint venture between Royal Dutch Shell and China National Petroleum Corp signed a 30 year exploration and production sharing agreement in May for block D. The deal, which includes a five-year exploration period, covers onshore and offshore exploration for natural gas and its production in Qatar Block D. Cnooc Ltd of Hong Kong signed a 25-year agreement with Qatar Petroleum in August 2009 to search for gas in a separate offshore block.
The country expects by early next year to increase its annual capacity for exporting liquefied natural gas to 77 million tons, equivalent to about 3.75 trillion cubic feet of pipeline gas, with the completion of its final planned liquefaction plant. Qatar's future growth may lie in construction of sub-sea pipelines to oil-rich neighbours, which are desperate for gas for energy-intensive economies but reluctant to pay market rates for it.
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