Published By : 20 Jul 2017 | Published By : QYRESEARCH
Occasionally cooperative and often competitive race between Qatar and Iran, as far as the production of natural gas is concerned, has taken a fresh turn. Even while the two countries continue to compete as leading oil producers, they together have aspired to develop the market on natural gas project by exporting it to Asia. Although, the plan has already causes a great loss to their economy. Later, they decided to corporate with each other to raise the natural gas market through selling their product to both east and west, which has helped their economy to rise steadily. In the present scenario, both countries have constructed their own gas pipeline and LNG plants to the neighboring UAE.
Joint Collaboration to Produce the Biggest Gas Plant
Qatar majorly focuses on Europe and Asia, Japan in particular, to boost the supplies of LNG, and has become world’s wealthiest country and a major global investor across the Middle East. Iran, on the other hand, began well in 1991 but slowed by many mismanagement, political infighting, and indecisions. In 2005, Qatar primarily focused on the development of reservoir in the North Field and discovered that the LNG market has become oversupplied, for which they blocked new pipelines to many places.
Iran took over the leading position in the market in 2014 and has been predicted to exceed Qatar’s from the North Field by 2020. Qatar has announced a new gas project after signing the deal with Iran’s South Pars Phase 11, which is expected to be double in size, increasing its LNG export capacity by 30%, up to 100 million metric tons by 2023. This deal is considered as a stepping stone in LNG production, and will put Qatar head and shoulders with Australia and the U.S., if not exceed them.