Overview
Natural gas plays a central role in both Oman’s and Qatar’s energy strategies, but at vastly different scales. Qatar is the world’s largest LNG exporter, while Oman is a mid-tier producer focused on domestic supply and selective exports. Both nations view gas as a transition fuel toward cleaner energy systems.
Oman’s Gas Sector
Oman produces roughly 40 billion cubic metres of natural gas annually, with significant output from BP-operated Block 61 (Khazzan). Gas is critical for domestic power generation, industrial use, and feedstock for petrochemical plants in Sohar. Oman LNG and Qalhat LNG handle the country’s export volumes, though domestic demand increasingly competes with export capacity.
Qatar’s Gas Sector
Qatar produces over 175 billion cubic metres annually and is expanding North Field production to boost LNG capacity to 126 million tonnes per year by 2027. QatarEnergy dominates the sector, and LNG revenues form the backbone of Qatar’s fiscal position. Qatar’s low production costs give it a competitive edge in global gas markets.
Key Differences
Qatar’s reserves are roughly 15 times larger than Oman’s, and its production costs are among the lowest globally. Oman faces a domestic supply challenge, while Qatar has surplus capacity for export. Qatar’s gas sector is state-dominated, whereas Oman relies more on international partnerships with majors like BP and Shell.
Verdict / Bottom Line
Qatar’s position as the world’s leading LNG exporter is unassailable in the near term. Oman’s gas sector serves a different purpose, primarily supporting domestic industrialisation and energy security. Oman should focus on maximising value from its gas through downstream processing rather than competing on export volumes.