Qatar, a small peninsular country protruding into the Gulf, also hosts the biggest USA military base in the region as a bulwark against Iran. It carries about two billion cubic feet of gas per day.
Qatar Petroleum announced in April that it will increase its volumes by doubling the size of the new gas project in the North Field's southern area, increasing production here of natural gas, condensate and other products by a million barrels of oil equivalent a day. "Basically what it's saying is, 'We are going to promote LNG as a substitute for oil,"' he said. The principal activities of QP, its subsidiaries and joint ventures are the exploration, production, local and worldwide sale of crude oil, natural gas and gas liquids, refined products, synthetic fuels, petrochemicals, fuel additives, fertilizers, liquefied natural gas (LNG), steel and aluminium.
"LNG supplies are abundant now, and there are many projects under development, but the expected growth in demand is very large", Al Kaabi said.
Taking questions at a news conference, the ministers did not rule out that they would impose further sanctions.
With such low production costs and LNG facilities closer to buyers in Europe and Asia, the Qatari move means USA producers could struggle to sell their LNG competitively and projects still needing finance could struggle to find investors.
Speaking to reporters after reading the statement, Shoukri said Qatar's response to the bloc's conditions had "no substance".
Qatar is the world's biggest producer of Liquefied Natural Gas (LNG).
The GCC includes Saudi Arabia, the UAE, Bahrain, Oman, Kuwait and Qatar.
The demands inlcuded ending support for the Muslim Brotherhood, cutting ties with Iran and closing state-owned TV broadcaster al-Jazeera.
The Egyptian foreign minister went on to say that they have passed the stage of only accusing Qatar of funding and supporting terrorism and that they now have proof to back their claims.
However, no such sanctions have been applied so far and activities in the banking system have returned to normalcy following a few days of volatility when the measures against the country were announced, the report clarified.
The North Field was discovered in 1971, and is known as South Pars in Iran.
The announcement to expand comes just three months after Qatar ended its 12-year, self-imposed moratorium on development of the North Field.
While Qatar's hydrocarbon exports have not yet been affected, there have been reports of disruptions to certain non-hydrocarbon exports and a forced shutdown of helium production. Squeezing out more of the super-chilled fuel from existing plants is the cheapest way to boost production, but it won't be enough, Al Kaabi said.
The uplift in production was to meet projected increased demand for gas, he had added.
Iran is moving quickly to expand its own gas potential now that it is free from the most stringent global sanctions and is expected to surpass Doha's production levels from their shared gas field this year.
And yesterday, details of the deal were revealed.