Qatar Petroleum ups LNG expansion plans to 48 mmtpa

Qatar Petroleum (QP) announced plans for an additional two trains on its Megatrains expansion project. It is targeting LNG output of 126 mmtpa by 2027, up from the current 77 mmtpa – representing a 64% increase. The decision was taken following the results from an appraisal well, onshore near Ras Laffan industrial city. The increase in the capacity of its Megatrains expansion project is a bold move by QP. The LNG market already looks well supplied from the mid-2020s after a record year for project sanctions in 2019 and 2020 set to be of a similar scale. But as Qatar is the lowest cost LNG producer globally, it can withstand lower prices for longer than any of its competitors. We give our take on what we think the other key motivators for the increase in output are, what this might mean for partner selection and when the additional trains could be sanctioned.