Qatar to Supply EU with More LNG If Certain Conditions are Met

The United States is in talks with energy corporations and major gas-producing countries such as Norway and Qatar about the possibility of gas supply to Europe.
Publish Date
1st February 2022
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Read Time
2 minutes

Qatar, one of the world’s top LNG producers, wants the European Union to limit the resale of gas shipments outside the EU in exchange for Qatar agreeing to redirect emergency supplies to Europe in the event of a Russian invasion of Ukraine, according to Reuters, citing a source briefed on the talks.

The EU and the US are attempting to arrange additional LNG supplies from major gas-producing countries and large energy companies, which would be delivered to Europe if Russian deliveries were disrupted or interrupted in the event of a confrontation with Ukraine.

The United States is in talks with energy corporations and major gas-producing countries such as Norway and Qatar about the possibility of gas supply to Europe.

Last week, US Press Secretary Jen Psaki stated that the US was attempting to locate additional non-Russian natural gas supplies from North Africa and the Middle East, Asia, and the US.

“We’re in discussion with major natural gas producers around the globe to understand their capacity and willingness to temporarily surge natural gas output and to allocate these volumes to European buyers,” Psaki added.

Qatar, on the other hand, is demanding guarantees that cargoes would not be resold on the spot market outside of the EU later, as well as a resolution of a 2018 investigation into Qatar’s long-term supply contracts by the European Commission.

According to data from Gas Infrastructure Europe, Europe’s gas storage levels have plummeted below 40%; gas storage sites across Europe are 38.99% full, which is a historically low level. For this time of year, this is 15.6% points below the five-year average.

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