Record oil boosts Qatar exports

A surge in oil prices and LNG output boosted Qatar's exports by QR30 billion (Dh30.2bn) to their highest level in 2007 and economists expect another record exports year in 2008.

From nearly QR122.4bn in 2006, Qatar's total exports surged to around QR152.9bn in 2007, the Qatari state Planning Council said yesterday. A breakdown showed crude oil exports swelled from around QR60bn to QR69.8bn while liquefied natural gas sales grew from about QR30bn to QR34.5bn.

Oil sales accounted for around 45 per cent of the Gulf country's total exports in 2007, while LNG exports formed nearly 23 per cent. Condensates were valued at QR19.4bn, or around 12.7 per cent. The exports also included propane, urea and non-hydrocarbon products.

The figures showed Japan remained the largest market for Qatari exports, with a value of QR62bn and a share of 41.1 per cent in 2007. Its imports from Qatar stood at around QR51.3bn in 2006.

Other key trading partners included Qatar's partners in the six-nation Gulf Co-operation Council (GCC), with exports of around QR6.1bn, a share of nearly four per cent. Exports to the European Union were worth about QR6.8bn or 4.5 per cent of the total exports.

Oil and LNG account for the bulk of Qatar's exports to Japan and other Asian and Western countries. Next to Japan was South Korea, with a value of around QR26.7bn, followed by Thailand, Singapore and India.

The surge in Qatar's 2007 total exports was mainly due to an increase in oil prices and the country's crude output, which exceeded 800,000 bpd last year. Oil prices were also around $10 higher than their 2006 level of $60 a barrel. Another reason is the surge in the country's LNG production from just over 25 million tonnes in 2006 to nearly 30 million tonnes in 2007.

"Qatar's exports will likely climb to a record high level this year because LNG production is growing steadily and oil prices are projected to be much higher than their 2007 level… the country is also pumping crude at near capacity," a Gulf economist said. "Our expectations are that LNG exports could start fetching Qatar as much as its oil sales or even more when all the projects are completed within a couple of years and Qatar becomes the dominant LNG exporter."

Qatar has pumped in excess of $60bn into projects to tap its gigantic offshore North Field, the world's largest single reservoir of non-associated natural gas, with an estimated 900 trillion cubic metres. From just 4.4 million tonnes in 1997, its LNG output jumped to more than 25 million tonnes in 2006 and a record 30 million tonnes in 2007. It is projected to surge to 45.9 million tonnes in 2008 and 60 million tonnes in 2009 before peaking at nearly 77 million tonnes in 2012.

The state-owned Qatar Petroleum has allocated QR130bn for the LNG sector in its 2007-2011 plan, bringing the cumulative investments in the sector to more than $100bn (Dh367bn).

The surge in its gas exports has turned Qatar into one of the wealthiest nations and allowed it to record one of the highest economic growth rates, which averaged over 15 per cent annually over the past five years.