Doha, 25 March 2022 (TDI): Qatari Energy Minister, Saad Sherida Al-Kaabi told that Qatar will stand “in solidarity with Europe” and will keep natural gas flowing there, even if other customers offer to pay more.
The Gulf Kingdom supplies liquefied natural gas (LNG) to some European states but Qatar has the LNG supply that is contractually divertible to other customers, especially in Asia, if they offer to pay more.
Further Sheikh Al-Kaabi, who is also President and CEO of Qatar Energy, stated that Qatar is not going to divert from its energy contracts and will keep them sustain with Europe, even if there is financial gain for them to divert away.
Qatar would not do that in the best interest of the solidarity of Europe. The Minister rejected the sanctions on Russia’s oil and gas industry, by stating that “energy should stay out of politics” and further reiterated that complete obstruction of Russian gas supplies to Europe is “practically impossible.”
The Minister further clarified that Qatar is not biased in the favor of any state in the present conflictual scenario. The European Union intends to reduce its consumption of Russian natural gas this year as it prepares to cut ties with its single largest energy supplier due to the contemporary conflict in Ukraine.
Further, European Union has planned to streamline its strategy for accessing alternate supplies i.e. the export of liquefied natural gas, instant increment in the production and imports of bio-methane and renewable hydrogen, and by upgrading their buildings to diminish the consumption.
Economy Minister of Germany, Robert Habeck, and their officials also have visited Qatar for negotiation on supplying gas to Europe in the midst of Russian energy uncertainty.
Minister Sheikh Al-Kaabi stated that they have not agreed on a long-term agreement with Germany yet, but they are willing to discuss with the companies that they have been discussing to put a long-term agreement in place potentially.
British Prime Minister, Boris Johnson also visited the Kingdom of Saudi Arabia and the United Arab Emirates in an attempt to influence both states to increase their oil supply.
The two states have spare production capacity but both have so far remained committed to the OPEC+ deal with Russia to only gradually increase output.
Qatar anticipates that by 2028, its gas volumes will be distributed equally in the east and west of the Suez Canal. Presently, approximately 80% of Qatar’s gas is being supplied in the east, while just 20% is in the west.
Due to diplomatic rift with neighboring states, Qatar had withdrawn from OPEC in 2019. According to Minister Al-Kaabi, they are not planning on returning to OPEC, but he praised the supported supply moves by the group and declared their plan “very sensible”.
