Qatar Leverages LNG Demand to Attain Clean Energy Transition

The comprehensive strategy to tackle environmental issues across numerous industries for increased efficiency and cost-effectiveness has leveraged Qatar’s competitiveness in order to drive clean energy transition and energy goals, according to a recent report by PWC.

Top industry analysts in the country stressed the future strategic initiatives, which strengthen the LNG industry and expand energy production.

It said: “Besides green hydrogen, its derivatives like green methanol and green ammonia are gaining traction globally for various uses, including CO2-free energy production and eco-friendly fuels in the maritime and automotive sectors. With countries and companies exploring these alternatives to fossil fuels, Qatar has an opportunity to lead in producing and exporting these green products, responding to the increasing demand for sustainable solutions.”

Qatar is ranked the sixth-largest oil producer in the region and 14th worldwide, making it a key player in the global energy market as the country is poised to bolster the LNG output by 85% by the decade-end.

Positioned as the third largest natural gas reserves in the world, Qatar has emerged to be the largest single-site exporter of urea, with several unique energy portfolios.

In terms of decarbonization, the country is decreasing greenhouse gas emissions by opting for natural gas for power generation.

Augmenting to its growing economy, the report further notes that, Qatar has launched solar power projects like the Al Kharsaah Solar PV Power Plant, which supplies clean energy to more than 200,000 residents and is expected to expand its solar capacity to over 5 gigawatts (GW) in the next 10 to 11 years.

The researchers also note the enhancement of sustainable ammonia production with the world’s largest blue ammonia plant, integrating Carbon Capture (CC) and Sequestration (CCS) technology, aiming to increase its CCS capacity by 400% by 2035.

However, the country’s solar power expansion allows the production of green hydrogen, green methanol, and green ammonia, tapping into the surging global demand for clean hydrogen, to increase by 2050, aligned with climate goals.

Market experts further add that Qatar is paving the way towards being a global leader for green hydrogen, leveraging its LNG transport expertise for worldwide distribution, such as in proposed waste-to-fuel plants for nearly emission-free operations.