Qatar says inflationary pressures impacting oil and gas industry

Illustration shows model of petrol pump and Qatar flag colors
Model of petrol pump is seen in front of Qatar flag colors in this illustration taken March 25, 2022. REUTERS/Dado Ruvic/Illustration

Sept 26 (Reuters) - Qatar's Minister of State for Energy Affairs said on Monday that inflationary pressures have led to rising production costs, delays in investment decisions, and increased policy uncertainty in the oil and gas industry.

Minister Saad al-Kaabi said in a statement the sector needs to help people recognise that demands to cancel hydrocarbons "are not only unrealistic but, as recent months have proven, are harmful to a realistic, accelerated transition".

Kaabi said that hydrocarbons "are not going to disappear any time in the near future". Therefore cleaner forms of hydrocarbons were essential for a responsible transition.

"Natural gas is certainly the cleanest fossil fuel, and a much-needed reliable and economic solution to manage intermittency issues, when the sun is not shining, or when the wind is not blowing," he said.

Qatar is the world's top LNG exporter.

Reporting by Moataz Mohamed; Editing by Jan Harvey and Angus MacSwan

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