From: Team 1 (Shaikha Almajed, Asma Boughorbel, Abdulla Abualam, Sami Diab, Mohammed Alrumaihi)

ENGL 210-504
Dr. Mary Queen
Problem Statement Final Draft
Due Date: 12 March 2024
Over Reliance On Natural Gas in Qatar

PROBLEM
It has become evident that nonrenewable energy is a vital contributor to Qatar’s economy. Qatar has
achieved great success in many areas in the last 30 years, mainly due to the discovery of natural gas.
However, it became apparent globally by the public, law legislatures and overall awareness around global
warming that nonrenewable energy sources will decline in demand.

The discovery of natural gas has provided Qatar with a power generating source, which is also at high
demand by many countries around the world. This brings a sizable amount of income for Qatar and has
been estimated to be around 70% of its total government revenue in 2018 (Economy of Qatar | Milipol
Qatar, n.d.).

In recent years, it has become clear that the use of fossil fuel as an energy source will decline due to the
shifted alert towards global warming and rise in sea levels. Since the use of natural gas releases large
amounts of greenhouse gasses, being a major contributor to global unsustainability. The global goals of
shifting towards more sustainable practices could cause complications for Qatar if not addressed ahead
of time.

To mitigate the over reliance on natural gas in Qatar for both energy and income, a long-term solution
must be implemented to tackle the core of the issue.

PURPOSE
The main objective of this research is to look into Qatar's over-reliance on natural gas to fuel the
country's economy. By assessing the complexity of the natural gas economy in Qatar now and how it will
look after the transition to renewable sources, the most suitable course of action can be taken during
the transition to reduce any lasting effects. Specifically focusing on how the transition will impact Qatar's
future economic growth, the international contracts, citizen’s standard of living and the population GDP.

My team will investigate how natural gas in Qatar influences the economy and create a seamless
transition into more sustainable and renewable resources. Taking into consideration economic stability,
how to maintain the standard of life and foster international relations. The transition will contribute to
Qatar’s 2030 vision for “A comprehensive urban development plan for Qatar that adopts a sustainable
policy with regard to urban expansion and population distribution.” (General Secretariat For
Development Planning, 2008b).

OBJECTIVES
The main goals of the given problem statement serve the idea of presenting the best possible solution in
Qatar:
 1. Understanding the economic complexity of the energy market, before beginning to suggest a
solution as it is important to recognise the broad market and its fluctuating demands.
2. Determining the factors that make Qatar reliant on the use of natural gas, as well as having a
clear conception on why natural gas is being relied on which will help present possible solutions.
3. Identifying the factors that make Qatar rely on the natural gas industry as a source of income
and revenue. Factors like geographical location, global market and standard of living.
4. Giving different possible solutions to stop the over reliance on natural gas from becoming a
wider issue. Ensuring that the economic stability is taken into consideration, where there will not
be permanent long term economic devastation.
5. Presenting possible solutions backed by evidence to confirm their validity and accuracy when
implemented.
6. Selecting the most suitable solution for a long-term sustainability option in Qatar. The solution
presented should tackle the core issue of the natural gas problem taking into consideration all
the factors that contribute to the reliance.

SCOPE
The natural gas industry is relied on by many countries across the world for industrial use and generation
of electricity. The scope of this research is mainly focused on Qatar as it heavily relies on the production
and trade of natural gas (Natural Gas Consumption by Country - Worldometer, n.d.). Major companies
like QatarEnergy LNG and North Field play a big role in contributing to this problem (QatarEnergy LNG​​-
Homepage​, n.d.). Continuing to expand their practices and goals to make Qatar recognized for its natural
gas. This drives Qatar’s growing economy and standing in the global market. The standard of living for
the citizens and new coming residence keeps improving year by year. The revenue that comes from
trading and exporting natural gas especially liquified natural gas to countries like South Korea goes to
widowed women (Felder & Vuollo, 2008), underdeveloped countries (Qatar Provides USD708 Million in
Aid to Least Developed Countries in 2022, n.d.) and Qatar’s infrastructure.

Factors that may impact the decisions made on this problem include:

● Social: The quality of life for the citizens rapidly increased as the natural gas industry evolved
from the 1970s till present day. The natural gas industry employs many in on and offshore
locations, having to transition out of the natural gas industry may cause a decrease in
employment rates.
● Economic: Qatar has the third largest natural gas reserve and the second natural gas exporter
(Qatar Natural Gas Production and Exports Stable as Country Eyes Expansion, n.d.). Qatar has
the highest GDP per capita in the world in 2018 due to his consistent involvement in the natural
gas industry (Economy of Qatar | Milipol Qatar, n.d.). There might be a short term effect on the
economy if the transition occurs rapidly.
● Environmental: Sustainability issues that come with the procedure of extracting and processing
natural gas (LNG) (QatarEnergy LNG​​- Operations, n.d.). It increases carbon dioxide and methane
emissions which significantly impacts the GreenHouse Effect.

International agreements and future plans can halt the progress made to turn Qatar into a completely
sustainable and environmentally aware country. Transitioning away from natural gas requires the
support of the whole nation as the process affects everyone. Citizens will have doubts on how the
transition will affect their daily life in terms of jobs, income and lifestyle. Many companies will become
obsolete or have a huge turnover affecting the overall economic stability.
To begin the process of switching from natural gas to a sustainable and renewable energy source is
time-consuming, has a substantial financial burden, and requires extensive laboratory research, which
highlights the difficulty that will be faced to achieve this goal.

PREVIOUS & CURRENT RESEARCH

In 2001, it was recorded that 22% of the world’s energy demand is for natural gas. Starting from 1971,
the reserves of natural gas started to rapidly increase around the world. Between 2002 and 2003,
reserves in industrialized countries have increased by 18 trillion cubic feet (OnePetro, 2001). In 2021, the
US Energy Information Administration has estimated that around 34% of the total CO2 emissions emitted
in the USA are caused by the combustion of natural gas alone (eia, 2021). The most important uses of
natural gas are electrical generation, heating, transportation, industry and other daily activities (MET,
2020). Our world has been at high reliance on gas and countries in ownership of gas fields withhold high
demand for exportation.

Figure 1: Oil and gas reserves reserves in Qatar, (AiChE, 2017)

The oil and gas industrial areas in Qatar were established in Ras Raffan and Umm Said in 1949 and 1953
respectively. These industries were built to export the oil and gas produced in the fields. From this,
Qatari oil and gas companies started to establish such as Qatar Fertilizer Company (QAFCO) in 1969,
Qatar Petroleum (QP) in 1974, Qatar Steel Co in 1978, and Qatar Petrochemicals (QAPCO) in 1981. Qatar
became in ownership of the worlds largest gas-to-liquid plants, called The Oryx and Pearl plants where
they produce 34,000 bbl/day and 140,000 bbl/day. Qatargas, a local gas company has constructed 14
liquified natural gas (LNG) trains which started an immense production of 79 million m.t. This, recorded
in 2015, was a third of the world’s global LNG trade, making Qatar the largest supplier then. Oil and gas
exportation became 98% of Qatar’s total exports which valued $78 billion that year. This indicates that
world’s demands are very high as well as Qatar has high reliance on this exportation. In 2014, the Qatar
National Bank reported that the hydrocarbon sector contributed to almost half of Qatar’s total
government revenues that year. Qatar’s recoverable reserves were reported to be 25 billion barrels (bbl)
of oil and 872 trillion ft^3 (scf) of gas. This ranks Qatar just after Russia and Iran in order of having the
most natural gas reserves as well as the thirteenth in the world in terms of crude oil. Most of Qatar’s gas
comes from the North field shown in figure 1, which is predicted to last for another century (AiCHe,
2017).

Since Qatar’s main source of income comes from the exportation of gas, it puts the country in a position
of high dependency on this factor. The gas reservoirs owned by Qatar are certainly not unlimited, as well
as, our world is shifting towards creating a more sustainable way of living. Using gas as the primary
source of income for Qatar cannot be long-term and will be obliged to find alternative income sources in
replacement. With the global goal shifts, Qatar will become at risk if it continues to be fully reliant on
gas.

Figure 2: Qatar’s Imports and Exports by type and region (I.C.I.S)

As per Qatar’s vision, the aim is to expand the North Field Project to primarily focus on increasing the
LNG (Liquified Natural Gas) capacity. By expanding this field, it involves establishing new LNG trains and a
carbon capture and storage facility to reduce greenhouse gas emissions by 25%. With such expansion, it
is set by 2025, that the entire manufacturing project is estimated at around 1.4 million barrels of oil that
is worth $28.75bn. The main reason for such high income is the goal to provide sustainable growth in the
year 2030 (Offshore Technology, 2022). This planned investment that they started states how
emphasized Qatar’s dedication is towards natural gas and the society of environmental sustainability. On
top of that, countries outside Qatar have interfered such as when the Russia and Ukraine war occurred
that rebounded throughout the LNG market, showing the deterioration between all of Europe, however
a strengthening benefit towards Qatar's LNG market(Savvides, N, 2023). .Nevertheless, all these counters
strengthen Qatar in securing its global energy security level and to maintain a reputation as one of the
leaders of global energy suppliers. Regarding how well secured they are, Qatar’s one of main focuses is
expanding the NorthField Area as mentioned above by withholding the idea of the four LNG trains to an
extraordinary 32 million metric tons. In addition, Qatar’s liquefaction capacity in the North Field South
Project is to increase from 110 to 126 million metric tons alongside Iran, considering its dependence on
global demand for natural gas and its strive to be energy poverty free. QatarEnergy as a whole plays the
majority when discussing the reliance on natural gas, since their sight is to transfer to renewable energy
and hydrogen, whilst increasing their value of natural gas ranging 2100 trillion cubic feet (QatarEnergy
LNG, N/D).

Figure 3: Qatar’s expansion along several North Field Projects.(Imperatori M, 2023)

QatarEnergy , formerly known as Qatar Petroleum, is undergoing a change by merging QatarEnergy LNG,
also formerly known as Qatar Gas, to set progressive demands for the future of its nation. To begin with,
by the year 2026, it is expected to raise its LNG output to 142 million metric tons, giving the
consideration of an 85% increase. This demonstrates environmental sustainability with an objective to
lessen the 25% as part of the climate change effects in Qatar, which is extremely vulnerable to the
country (Jazeera, A. (2024). Moreover, Qatar also dedicates its time and effort to increase its LNG
production capacity by 2027. QatarEnergy and other companies under them such as QatarEnergy LNG,
Shell, Qafco, Qapco that, and many more that was introduced in 2023, to spend billions to produce more
natural gas, around a 64% increase. This aims at how critical the natural gas industry is in Qatar, as it aids
help to 2.5 million people during the year 2022. In addition, Qatar also has recently announced its supply
scale of 7.5mtpa of LNG to India’s Petronet, along with Bangladesh with 1.5mpta for 15 years. These
agreements lead to an increased world’s natural gas supply by over 14%, which introduces that those
factors are initially aligned with the North Field Project that will lay down Qatar the second biggest
natural gas gas producer globally (Verma N, 2024).

This substantial growth demonstrates Qatar’s heavy dependance on the natural gas industry, which is
essential to the country’s economy and export revenue, nearly 85% of export revenue represents 40% of
the country’s GDP. This reliance shows not only how crucial this industry is to maintaining high living
standards and economic stability, but also shows the environmental issues, especially regarding CO2
emissions (IMF elibrary, 2024). As Qatar is approaching to raise its LNG output, long-term broadening
plans are vital. The goal of these strategies is to strike a balance between the demands of environmental
sustainability, economic progress, and the overall well-being of the country’s citizens. This complex
interchange between economic and environmental goals is set to impact the future of the country,
influencing its everyday life and the country’s position in the global energy industry.

Analysis of User Needs

Qatar's economy is heavily reliant on natural gas, various users exhibit distinct needs and concerns,
impacting them differently. The primary users, including the government, energy sector companies, and
the population comprising citizens and residents, rely on natural gas for economic stability, operational
continuity, and daily necessities. The government seeks a stable revenue stream to support national
initiatives, while energy sector companies prioritize uninterrupted production and profitability. The
energy sector includes companies like Qatar Energy, Qatar Energy LNG and QatarGas (Companies
Profiles, n.d.).

Citizens and residents depend on affordable and reliable energy for essential services and job
opportunities derived from the energy sector. Qatar citizens may have more of an influence on the
country's dependency and have strong views if the transition impacted their lifestyle as they have more
financial stability. The new coming residents enjoy the country's infrastructure development (Future
Projects – Ministry of Commerce and Industry, 2022).

Secondary users, such as environmental groups and future generations, advocate for sustainable energy
policies and emissions reductions to address environmental concerns and ensure long-term prosperity.
Another secondary user is the global community where Qatar's natural gas plays a vital role in energy
markets. Impacts are multifaceted, affecting economic stability and energy security.

Currently any disruption in natural gas production or exportation directly impacts government and
energy sector revenues, investment opportunities, and job creation, affecting the entire economy. The
reliance on a single energy source makes Qatar vulnerable to geopolitical tensions and market
fluctuations, potentially disrupting energy supplies and prices.

Design Constraints
Designing solutions for Qatar's reliance on natural gas entails navigating constraints related to time,
location, resources, and implementation. The two-month timeframe for investigation necessitates
prioritizing feasible initiatives. Climatic conditions influence the suitability of renewable energy sources,
with solar energy emerging as a viable option. Qatar’s geographical location is surrounded by natural gas
reserves and has a key role in the international energy market.

Resource constraints emphasize economically viable solutions utilizing the financial strength Qatar
gained through natural gas. These resources can be strategically directed towards diversifying the
economy into more sustainable industries and markets, mitigating the risks associated with overreliance
on natural gas. Implementation requires government endorsement, industry cooperation, and
community engagement, highlighting the importance of scalable and stakeholder-accepted solutions.
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