Qatar Withdraws From OPEC to Focus on Its Gas Ambitions

DOHA: After 57 years has decided to withdraw from OPEC to focus on its gas ambitions.

Qatar is quitting OPEC from January 2019, as itwants to focus on its gas ambitions.

Doha is one of OPEC’s smallest oil producers but worlds’ biggest exporter of liquefied natural gas (LNG).

Minister of State for Energy Affairs Saad al-Kaabi said in a news conference, “the decision was communicated to OPEC”. He said this does not imply Doha is getting out of oil business. Doha wants to focus on its gas resources.

Qatar plays a very small role in OPEC and now they don’t want to waste their time and efforts where they are very small player.

OPEC is an organization of 15 nations, its policy making is dominated by Saudi Arabia, Russia and the United States.

Saudi Arabia, Russia and, the United States are world’s top three oil producers. Together these three countries accounts for almostthird of global output.

Riyadh and Moscow, been making output policies under the constant pressure from President Donald Trump. The pressure has been on OPEC to lower the prices.

The decision of Doha may not impact the OPEC as much but may have a psychological impact. Doha’s decision will set an example for other members. The other members might follow the same path as that of Doha tofight back the unilateral decisions of Saudi Arabia.

Al- Kaabi, has said the decision is not political but related to countries long- term strategy to develop its gas industry.

Doha is an influential player in LNG market producing 77 million tons per year.

Qatar expects to increase its LNG output to 110 million by 2024. The decision of getting out of OPEC will not impact theorganization as Qatar was playing a small role. However, it can be expected that Qatar will search its own markets out of OPEC for oil and gas.

Qatar announced its decision on Monday. It will withdraw from OPEC from January 2019. It will attend the be attending the oil exporter group meeting this week.

Qatar has been member of OPEC for 57 tears.