Qatar applies to export LNG from US through import terminal in Texas…

Qatar is buying oil and gas fields from Brazil to the Congo as the biggest liquefied natural-gas producer sees fewer energy developments at home amid a moratorium on more expansion of its North Field.
Qatar Petroleum International’s $1bn purchase of 23% of the Parque das Conchas oilfield off Brazil from Royal Dutch Shell is the latest of three foreign deals in the past year. It completed the acquisition of 15% of Total E&P’s Congo unit in December, injecting $1.6bn.
QPI also teamed up with Centrica in April to buy gas fields in Canada from Suncor Energy Inc for $981mn.
Qatar doesn’t plan to boost exports amid a moratorium on more development of its North Field, the largest gas reservoir in the world. Slowing domestic energy investment comes as the country needs to fund $200bn in infrastructure before hosting soccer’s 2022 World Cup amid weaker economic growth.
“Qatar is buying stuff because they’ve got money to spend: It’s called diversification,” Tom James, a Dubai-based managing director at Navitas Resources Ltd, an adviser on energy and commodity markets, said in a telephone interview last week.
The stake in Parque das Conchas, known as BC-10, is Qatar Petroleum International’s first investment in South America, it said in a statement. Qatar also applied to export LNG from the US through an import terminal in Texas and formed Nebras Power in 2013, a $1bn fund to invest in water and power abroad.
“BC-10 demonstrates our commitment to expanding our strategic and international investments globally,” chief executive officer Nasser al-Jaidah said in the release.
Qatar’s economic growth will slow to 4.6% this year as gas exports level off, the development planning ministry said in December. That is down from expansion of 17% in 2010, according to the International Monetary Fund, which estimates its 2mn people share a $200bn economy.
Qatar doesn’t plan to build more domestic LNG plants after it started up the last of 14 two years ago, increasing annual capacity to 77mn metric tonnes from zero in 15 years.
Qatar is due to complete the Barzan gas development, which supplies the domestic market, by next year.
The slowing growth may lead to “modest” budget deficits from 2015 through 2017, Citigroup’s Farouk Soussa said in a report last year. This as the country invests in new soccer stadiums, roads and a $35bn rail and metro system.
Qatar used income from rising LNG sales in the past few years to buy stakes in Barclays, the UK’s second-biggest bank, and Volkswagen, Europe’s largest automobile maker.
The purchase in Brazil is “really a general strategy to simply put to work the money they have outside their economy, which is very small,” Philippe Dauba-Pantanacce, a senior economist at Standard Chartered, said by telephone last week. “They do have an expertise in energy, they have knowhow.” Gulf Times

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