The merger of Qatargas and RasGas will create a global energy giant. The merger between the two companies operating in the liquefied natural gas (LNG) business was announced by the government of Qatar. The new group will be called Qatargas. "We are announcing the birth of the new Qatargas", the CEO of Qatar Petroleum, Saad al-Kaabi, told a press conference. The merger will result in annual savings of USD 545 million. The plan was first announced in December 2016, when Doha said it wanted to create a global energy operator in terms of size, services and reliability. Qatar is the world's largest exporter of LNG and the merger comes at a difficult time for the Gulf State, which has been isolated by neighboring countries for seven months now. Prior to the merger, RasGas managed all LNG operations while Qatargas was the world's largest LNG producer, with an output of around 77 million tons per year. Last year, Qatar announced it aimed to increase production in the North Field, which it shares with Iran, to 100 million tons by 2024. Finally, Kaabi confirmed that Qatar Petroleum is interested in investing in Iraq’s energy market, and said that talks are underway with the Iraqi government about possible commercial ties.