Qatar positions itself as ‘go-to’ emergency gas supplier for Europe
Qatar recently signed a declaration of intent on energy cooperation with Germany aimed at becoming its key supplier of liquefied natural gas (LNG) going forward.
The US $30 billion North Field (or “Dome”) Expansion is the world’s biggest LNG project.
Qatar’s Energy Minister
A statement from Qatar’s Energy Minister, Saad al-Kaabi, the TotalEnergies will have a 25 percent stake in the project, with no other company set to have a higher stake and the selection process for partners now finalised. The same terms were announced for the Eni partnership deal.
OilPrice.com reports: “The supergiant North Field natural gas field, together with the neighbouring 3,700 square kilometre area of Iran’s South Pars field, comprises by far the largest non-associated natural gas field in the world. By conservatives estimates the entire 9,700 square kilometre site holds at least 1,800 trillion cubic feet (Tcf) of non-associated natural gas and at least 50 billion barrels of natural gas condensates. This abundant resource had allowed Qatar for many years to be the number LNG exporter in the world, although it did lose that spot for a time to Australia.”
Qatar has been making these moves in a bid to become the emergency gas supplier for Europe. The continent looks to reduce its dependency on Russian oil and gas following Russia’s incursion into Ukraine.
Qatar is also expected to almost double its production of LNG by 2025.
Europe has for long rejected the long-term deals that Qatar seeks for its energy but the Ukraine conflict has forced a change in attitude.
The Ukraine conflict has also injected a new urgency into efforts around the world to develop new sources.
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Below, our Head of Flexible Purchasing and Energy Strategy, Latif Faiyaz, breaks down the key drivers affecting market behaviour this year.
Latif provides analysis of UK, European and global factors and provides a forecast for the remainder of the year.
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