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
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×