Minister of State for Energy Affairs H E Eng. Saad bin Sherida Al Kaabi speaking during a panel discussion titled ‘Energy Transition and Security: Meeting Demand in a Volatile World’ held under Doha Forum, yesterday.
Doha: Minister of State for Energy Affairs H E Eng. Saad bin Sherida Al Kaabi said yesterday that it is not possible to replace the Russian gas supplies overnight and it would need time.
“Immediately I don’t think we can help and nobody can replace (Russia gas). The volume that we are talking about 30-40 percent of gas coming from Russia to Europe is not something that can be replaced overnight, it needs time,” said Minister Al Kaabi, during a panel discussion titled ‘Energy Transition and Security: Meeting Demand in a Volatile World’ held yesterday under Doha Forum.
He added that agreement to supply Europe with an additional 15 billion cubic meters require many players.
“15 billion cubic meters is a large number and to accomplish that you need many players around the world. Qatar is one of the major suppliers of LNG to the world. We have been working on bringing more volume into Europe whether it is the terminal capacity in addition to announcing that we are going to go from 77mtpa to 126 mtpa from Qatar in addition to a project that we are working on from the US which will bring 60 million tones destined for Europe because that is the destination that we intended it for that will be online by 2024- 2025. So a lot of volume will be coming but 15 billion cubic meters need many more players to be part of that,” he added.
Minister Al Kaabi highlighted Qatar’s efforts to curb emissions and producing cleaner LNG.
“We have been working on carbon capture and sequestration since 2008. In 2015 we started the largest CO2 capture and sequestration in the Mena region. We are currently capturing 2.5 million tones per annum of CO2 and sequestr it underground,” he added.
Minister of State for Energy Affairs H E Eng. Saad bin Sherida Al Kaabi said, “By the time we have all our expansion in place by 2035 we have a plan till 2035 to reach 11 million tones of co2 sequestration. Before the 2022 FIFA World Cup, hopefully in October we will be inaugurating the largest single solar power plant in the centre of country in Al-Kharsaah which will power, upto 10 percent of the country’s national grid and being the largest gas producer and having that demonstrate that we are serious about the transition."
The Minister said that has made substantial progress in methane reduction and has joined the Global Methane Pledge now. “The reason we did not join it earlier because we started in 2015. The pledge says 30 percent reductions, while we reduced fugitive methane by 75 percent from 2015 till 2020. So we are way ahead in this regard,” he added.
Speaking during the panel discussion Patrick Pouyanné, Chairman and CEO TotalEnergies stated, ““Energy is a triangle: security of supply, pricing, and climate… We must find the right balance… Gas is part of this transition, because it gives the flexibility to move from coal to renewable to fully carbonised.”
Russia’s ongoing invasion of Ukraine was also discussed, with Anders Opedal, President and CEO, Equinor, saying, “We are in a war situation, so now it is about finding some of the short term solutions to ensure people get the energy, and particularly, it is important to ensure that we are not moving from an energy crisis to a fuel crisis.”
The panelists also explored the question of what role producer nations play in ensuring the world has adequate and affordable supplies of fuel while countries work towards building the infrastructure needed for a transition to more renewable energy sources. They additionally explored how suppliers can work together to regulate prices and manage supply, while protecting their interests in a world increasingly committed to green energy.
Patrick Pouyanne said that the company does not plan to write off its assets in Russia after the war of Ukraine like its international counterparts.
“For me its a question of accountability and the responsibility of the offshore stakeholders. Do I give them for free to Mr. Putin Because this is what it means leaving today and giving my shares,” Pouyanne said.
Instead of a full exit from Russia, TotalEnergies said that it would no longer provide capital for new projects in Russia and would not renew its Russian gasoil and crude supply contracts.
Pouyanne said that European gas prices would keep rising until a decision is made that Europe will use the fuel for the long term, which would lure investment.
He said that the way to control price gains was to accept the need for gas to be part of the energy mix for the coming years. He added it was inevitable Europe, which is around 30 percent to 40 percent dependent on Russian gas, would seek other suppliers, necessitating costly investments in infrastructure such as LNG terminals.
