2022-06-23 11:55:00
QATAR LNG FOR EUROPE
BLOOMBERG - June 23, 2022 - Qatar plans to insist on terms that will lock Europe Union countries in for two decades of liquefied natural gas purchases, a move that will complicate the bloc’s goal to cut emissions while also reducing its dependence on Russian fuel.
The Persian Gulf state, one of the world’s top LNG exporters, will demand that EU nations sign long-term contracts, according to people familiar with the situation who asked not to identified discussing a private matter. The EU countries say they need a shorter duration to hit the region’s pollution reduction goals, the people said.
A recent German deal for a 20-year US LNG supply agreement bolstered Qatar’s reserve to push through its demands, the people said. However, the Europeans argue that the Qatari offers are too rigid, providing buyers little ability to divert supply -- unlike the US contracts. Negotiations on the duration of the imports have been in deadlock since March, the people said.
State-controlled Qatar Energy and Qatargas, which operates the LNG facilities, didn’t immediately respond to requests for comment. Neither did Germany’s finance ministry.
European nations, led by Germany, have been pushing back against Qatari pressure over fears the strict nature of those contracts will mean they’ll need to keep importing the fossil fuel even after the region aims to curb emissions. If Qatar doesn’t relent, it threatens Europe’s ability to diversify gas supplies away from Russia as the middle eastern nation may move to sign more pacts in other regions like Asia.
Europe is racing to find alternatives to gas from Russia -- the continent’s biggest supplier -- after Moscow’s invasion of Ukraine. Imports of LNG from Qatar, which is investing tens of billions of dollars to boost production in the next five years, could be a key part of that solution.
Besides Qatar and the US, there are few other LNG exporters significantly boosting supply over the next decade, especially as the war in Ukraine is likely to crimp Russia’s expansion plans. But at the same time, European LNG demand is slated to balloon through 2030, while Qatar needs to lock-in customers to underpin an enormous expansion LNG plan.
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Earlier:
2022, June, 22, 09:55:00
GERMANY'S GAS RECESSION
The EU relied on Russia for as much as 40% of its gas needs before the war - rising to 55% for Germany - leaving a huge gap to fill in an already tight global gas market.
2022, June, 22, 09:50:00
GERMANY NEED COAL
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2022, June, 22, 09:40:00
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2022, June, 13, 14:40:00
GERMANY'S ENERGY SAVING
Chancellor Olaf Scholz’s three-party alliance agreed at the end of March to cut the levy on fuel for three months from June 1 by 30 euro cents per liter for gasoline and 14 cents for diesel, costing the government about 3 billion euros ($3.1 billion) in lost revenue.
2022, June, 10, 14:20:00
GERMANY NEED RUSSIAN ENERGY
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2022, May, 23, 13:05:00
GERMANY, QATAR LNG DEVELOPMENT
The new pact, inked during a Qatari state visit to Germany, comes as Berlin looks to fast-track a number of new LNG import terminals to reduce its dependence on Russian gas imports.
2022, April, 12, 12:50:00
QATAR LNG AMBITIONS
Even before the Ukraine war had Europe scrambling for alternatives for Russia's oil and natural gas, Qatar's ambitions to grow its LNG business were coinciding with burgeoning energy demand by western countries amid the recovery from the pandemic.
