Gas will play a longer role in the life cycle of the hydrocarbon industry
Diversification of the economy is imperative to create jobs in the private sector and one of the goals of Qatar National Vision 2030 is to achieve diversification. Gas will continue to play a much longer role in the life cycle of the hydrocarbon industry as it is one of the cleanest hydrocarbons, an expert said at the Euromoney Qatar 2022 conference.
Addressing the roundtable titled “Global and Qatari Macroeconomic Outlook,” Gourang Hemani, Chief Financial Officer of Qatar Islamic Bank, said, “The expansion that is happening in Qatar is timely. Europe currently imports around 77 billion cubic tons of liquefied natural gas (LNG) and Qatar supplies 24% of the total, so there is a lot more room to be able to grow and I think it’s a win-win situation- winner for both regions. Compared to other GCC countries, Qatar is in a somewhat happier position.
He added: “If you are in the pyramid of hydrocarbons, I think gas is supposed to be one of the cleanest hydrocarbons and gas will continue to play a much longer role in the life cycle of the industry. hydrocarbons.”
Alexis Antoniades, Director of the Chair of International Economics at Georgetown University – Qatar, noted that diversification of the economy is imperative due to the youth of the population, to generate jobs in the private sector and without diversification, you can’t do that.
Addressing the conference, Akber Khan, Senior Director, Asset Management, Al Rayan Investment, said: “There are a number of opposing forces that stand in the way and which investors, central bankers and governments need to confront. The global pandemic has had a significant impact on the global supply chain and had a major effect on the restriction of goods across a wide range of industries.
Responding to a question about the importance for Qatar to diversify, he said: “The Qatar National Vision 2030 lays out the plan for states to achieve goals in a number of areas and diversification is one of them. Citing the example of the Qatar Freezone Authority, Khan noted that it had been successful in attracting a number of companies, and that the Investment Promotion Agency had also been able to bring in service providers and manufacturing companies in Qatar through various incentives and initiatives. So there has been work going on for a long time in this regard.
Qatar has been endowed with an important natural resource which is gas, but therefore another resource that the country is now endowed with is capital and these two areas have a very important competitive advantage. “In the same way that gas has been integrated downstream and vertically in terms of the supply chain, so we have gone from just selling gas to selling LNG, to producing aluminum, fertilizer, of petrochemicals, and this uses the advantage of the main raw material to diversify the end customer. But the other area where the industry has not been sufficiently developed is that of capital. Qatar is a major exporter of petrochemicals. capital and this is an area where I think there is a very big opportunity to further improve the way capital is invested and used,” he added.