QATAR drops production. Who will supply liquefied gas to Europe and Germany in 2023?
LNG production in Qatar has declined this year, despite rising demands for this fuel at a time of energy crisis in Europe as the bloc seeks to break away from Russian gas, Bloomberg reported on Friday .
Qatar exported less than 35 million tons of LNG from January to May, a loss of 1 million tons over the same period in 2021, according to ship tracking data compiled by Bloomberg.
The news comes a few months after Qatar asked for guarantees from Europe, prior to Russia's invasion of Ukraine, that the blockade would restrict the resale of any LNG cargo outside of Europe on the spot market. Qatar also asked the EU to resolve a 2018 investigation into the Middle Eastern country's long-term supply contracts. In addition, Qatar would have concluded long-term supply contracts with Germany. Isn't this gas actually there? Also because Qatar had no intention, at least for now, of increasing production, but limited itself to diverting the loads destined for the Far East.
In 2021, Qatar submitted the FID (Final Investment Decision) for an LNG expansion project that will increase its annual capacity from 77 million tons to 110 million tons. But the $ 29 billion project will not be completed until 2025, meanwhile Qatari gas will not increase-
According to Bloomberg, Qatar managed to export 84 million tons of LNG last year, despite its declared annual capacity of 77 million tons, either by denouncing over-exploitation of its sources, or by becoming a third-party LNG broker.
Germany plans to build two import terminals to receive the LNG shipped when it finds a source. Last month, however, Germany and Qatar encountered an obstacle in their talks to conclude long-term LNG contracts. Qatar wants long-term contracts, while Germany wants to make room for the transition from fossil fuels.
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Article QATAR drops production. Who will supply liquefied gas to Europe and Germany in 2023? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-qatar-cala-la-produzione-chi-forninra-il-gas-liquefatto-alleuropa-e-alla-germania-nel-2023/ on Sat, 04 Jun 2022 12:00:32 +0000.