We bet the future: Qatar wants long-term contracts with EU countries. At what prices?
Encouraged by a recent 20-year LNG deal that a German energy company signed with a US exporter, Qatar – another major LNG exporter – is now looking to secure long-term contracts with EU importers, which they are doing. vying to procure non-Russian gas, according to Bloomberg reports.
However, the situation is in contrast with everything that, in theory, the EU has preached in the last 20 years, with the creation of the TTF spot gas market, on the one hand, and decarbonisation policies on the other. Furthermore, a twenty-year supply is extremely rigid in the quantities to be delivered, thus for a long time binding Western energy producers to the use of gas and preventing them from finding alternative sources.
Last month Qatar signed an agreement with Germany on an energy partnership that could turn into commercial relations for LNG, but then this rough agreement did not translate into any commercial transactions.
Earlier this week, however, the German electricity company EnBW signed a 20-year supply agreement with US firm Venture Global LNG, the first direct binding agreement to purchase long-term US LNG signed by a German company. At this point, Qatar was not left to wade
Last year Qatar announced the largest LNG project in the world, which is expected to bring Qatar's LNG production capacity from 77 million tons per year (mmtpa) to 110 mmtpa. The project, which is expected to start production in the fourth quarter of 2025, will cost $ 28.75 billion. Qatar is also planning another phase of expansion of the North Field, the largest natural gas field in the world, which it shares with Iran. The second phase of expansion will be the North Field South Project (NFS), which is set to further increase Qatar's LNG production capacity from 110 mmtpa to 126 mmtpa, with a production start date scheduled for 2027.
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The article We bet the future: Qatar wants long-term contracts with EU countries. At what prices? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/ci-scommettiamo-il-futuro-il-qatar-vuole-contratti-a-lungo-termine-con-i-paesi-ue-a-che-prezzi/ on Fri, 24 Jun 2022 08:00:16 +0000.