UPDATE 1-Qatar to boost LNG capacity to 39 million tonnes

(Adds details, oil output target)

DOHA, April 7 (Reuters) - Qatar plans to boost its liquefied natural gas (LNG) capacity by around eight million tonnes from current levels by the end of this year, an official said on Monday.

"Qatar's LNG capcity will reach 39 million tonnes per year by the end of 2008," Ahmed al-Khulaifi, chief operating officer of Qatargas, told an energy conference. Capacity in the world's largest exporter of LNG currently stands at 31 million tonnes.

OPEC-member Qatar was on track to meet its target to boost oil output capacity to a million barrels per day (bpd) in 2010 from around 850,000 bpd, Qatar's Minister of State for Energy and Industry Affairs Mohamed al-Sada told the same energy conference.

Energy producers faced tough challenges dealing with constraints in manpower and the rising costs of raw materials as they look to expand output, Sada said.

Qatar is already the world's largest exporter of LNG, which is gas chilled to its liquid form for export on specially designed tankers.

The delayed start of an LNG production facility will provide the capacity boost. Qatargas train four was due to come online in the third quarter 2008, delayed from the initial plan to start last winter, and will supply gas to Britain.

Qatar sits on the world's third-largest gas reserves and aims to boost LNG capacity to 77 million tonnes in 2010. LNG production in Qatar is split between two companies, Qatargas and Rasgas. Both are majority owned by the state oil company Qatar Petroleum

Qatar is one of the smallest oil producers in the Organization of the Petroleum Exporting Countries. The Gulf Arab state's output in March stood at around 840,000 bpd, according to a Reuters survey. (Reporting by Simon Webb, editing by Margaret Orgill)