File photo used for representation only
As European countries scout for natural gas to cut their reliance on Russian gas, Qatar is emerging as the most sought after destination to meet their energy needs. Qatar, world’s largest exporter of Liquefied Natural Gas (LNG), is expected to gain from Europe’s push for diversifying its gas imports.
When it comes to meeting the energy needs of the European countries, Qatar, which has the world’s third-largest natural gas reserve, is already an important player. Qatar was the second biggest supplier of LNG to EU countries and the UK in 2021. The country’s share in Europe’s total LNG imports was 24 percent last year, according to US Energy Information Administration (EIA). US, Qatar and Russia provided almost 70 percent of LNG received in Europe in 2021.
“In 2021, a large share of Europe’s supply of LNG originated in the United States, Qatar, and Russia. Combined, these three countries accounted for almost 70 percent of Europe’s total LNG imports, according to data by CEDIGAZ,” noted US Energy Information Administration in a report.
“The United States became Europe’s largest source of LNG in 2021, accounting for 26 percent of all LNG imported by European Union member countries (EU-27) and the United Kingdom (UK), followed by Qatar with 24 percent, and Russia with 20 percent,” said the report.
With geopolitical tensions going on, European countries have already started looking to explore options to meet their gas demand.
A high-level level delegation from Germany, headed by Robert Habeck, the Vice Chancellor and the Minister for Economic Affairs and Climate Action in the Federal Republic of Germany, was in Qatar to boost bilateral relations.
One of the important outcomes of the visit was that Qatar and Germany have agreed that their respective commercial entities would re-engage and progress discussions on long term LNG supplies from Qatar to Germany.
The German government has taken swift and concrete actions to fast-track the development of two LNG receiving terminals in Germany as a matter of priority to allow for the long term import of LNG to Germany and that such scheme has the full support of the German government.
Other European countries are also expected to seek LNG from Qatar, which is expanding its LNG production capacity.
Qatar has embarked on an ambitious LNG capacity expansion plan. The two-phase North Field Expansion project will see Qatar LNG capacity increase from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027, showing an increase of around 64 percent.
Europe’s natural gas production has been in continuous decline because of production limits on the Groningen field in the Netherlands and declines in the mature fields in the North Sea. To meet demand, Europe’s natural gas imports, particularly from Russia, have increased in recent years.
