Qatar bases 2022 budget on oil price of $55/b, up from $40/b in 2021

Qatar has based its 2022 fiscal budget on an average oil price estimate of $55/b, up from $40/b in 2021, thanks to the improvement in international energy prices, the country's finance minister said Dec. 7.

"The remarkable recovery in global energy prices, which still reflects the continued adoption of conservative estimates of revenues to maintain fiscal balance and limit the effects of oil price fluctuations on the performance of public finances," Ali al-Kuwari said in a statement carried by state-run Qatar News Agency.

Qatar has forecast revenues of Qatari Riyals 196 billion ($53.8 billion), which is up 22.4% from 2021 estimates, he added.

The country had forecast revenues of Riyals 160 billion in 2021, of which Riyals 121.6 billion was oil revenue.

Of the six members of the Gulf Cooperation Council, Qatar will have the lowest fiscal breakeven of $44/b in 2022, down from $52/b in 2021, the Institute of International Finance said in an Oct. 11 report.

The other GCC members are Saudi Arabia, Kuwait, Oman, the UAE and Bahrain.

Qatar, one of the world's biggest LNG exporters, currently has an LNG production capacity of about 77 million mt/year but has plans to boost it to 110 million mt/year with the addition of four more trains, and to 126 million mt/year with two additional trains.