Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Qatar in talks to supply gas to Europe if Russia cuts supplies

Qatar in talks to supply gas to Europe if Russia cuts supplies

Emir expected to tell US president Qatar can provide short-term emergency liquid gas to help replace any loss of supplies
The emir of Qatar, Sheikh Tamim bin Hamad al-Thani, is expected to tell the US president, Joe Biden, that his country will explore providing some short-term emergency liquid gas to help replace any shortages if Russia cuts off supplies to Germany.

Qatar is looking to supply Europe through transferring excess gas in storage in east Asia. It is also hoping to return to the European market on a bigger scale as its own production levels rise, but wants to see an end to a European Commission anti-trust investigation.

One source familiar with the talks said: “It looks as if they will have something to announce next week. There have been talks going on for a fortnight or more. It would be painful for Qatar but doable.”

British sources, who are involved in separate talks with Qatar, believe Doha can help bail Europe out even though Germany, which is dependent on Russian natural gas, has no liquified gas import terminal. The bulk of Qatar’s gas is sold in Asian markets on long-term contracts, but sources said there was some flexibility, albeit nowhere near enough to replace a full Russian cut-off.

The emir is due to meet Biden on Monday in Washington and the discussion will focus on how Qatar can help Europe from being plunged into darkness and cold if a conflict over Ukraine breaks out. Relations between the two countries are at an all-time high due to Qatar’s help with the US Afghan airlift, and a further promise of help from Doha on gas might tip the scales as Vladimir Putin decides if an invasion would be worthwhile.

The US secretary of state, Antony Blinken, has lavished praise on Qatar in recent months, and the only political tension has come over the pressure Qatar has put on the US to do more to release humanitarian funds to help Afghanistan famine.

Qatar is the largest global supplier of liquefied natural gas (LNG) alongside Australia. Two-thirds of its sales in the Asian market are under long-term deals, sometimes 20 years. Australia, a close ally of the US, has already promised to help.

Germany is dependent on Russian gas for its energy needs, drawing more than half of its gas imports from Russia against about 40% on average for EU countries, according to the EU’s statistics agency, Eurostat.

Nikos Tsafos, energy specialist at the Centre for Strategic and International Studies, said Europe was due anyway to import record amounts of LNG in January, but the proportion being sent to Europe from Qatar remained at a floor of 1m tonnes a month. By contrast Asia is purchasing 5m tonnes from Qatar.

In 2010 Qatar was broadly exporting equal amounts of gas to Europe and Asia. Some of this switch is down to Qatar’s hostility to a European Commission anti-trust investigation launched in 2018 looking at the way Qatar was selling long-term contracts into the European market. Qatar is looking for signs this investigation will wind down.

Putin has always insisted that he will never use gas as a geopolitical weapon, and there is no guarantee Russia would try to plunge Germany into the dark if heavy western sanctions are imposed.

A report from the Centre for American progress – a thinktank close to the Biden administration, warned this week: “In a fight over Ukraine, Russia would without a doubt be prepared to cut off gas supplies to Europe in winter. Furthermore, fighting in Ukraine could affect the flow of gas to Europe if pipelines are damaged or supplies are cut. Europe should therefore be taking immediate steps to prepare for a gas shortage this winter.”

Germany receives its LNG via three terminals in Belgium, the Netherlands or Poland. Another possible terminal is Rodvigo in Italy.

Plans to build a German LNG terminal at Brunsbüttel have not yet borne fruit, despite pressure from the previous US administration.

German energy executives remain optimistic that the close inter-dependence of Russia and Germany will prevent a breakdown in oil supplies, or a wider confrontation.

Markus Krebber, chief executive of RWE, Germany’s largest electricity supplier, told the German press a full Russian blockade would leave Germany only able to cope for a very few weeks.

If Putin did cut off supplies, Russia would lose foreign exchange reserves, and put the future of the controversial Nord Stream 2 pipeline in doubt since its defenders would no longer be able to argue that Russia had ringfenced the project from geopolitical considerations.

Krebber also advanced long-term plans to make German gas supplies more secure so “that gas suppliers have to secure their delivery obligations to a certain extent through long-term purchase contracts or storage”.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×