Qatari gas shipments to Europe decline.. what is the reason?
The factors that directed Qatari liquefied gas to European markets have changed.. How is that?
Shrouq
Qatari liquefied gas imports to Europe decreased this year, in light of its falling prices, which made the old continent a less attractive destination.
The percentage of Qatari liquefied gas exported to Europe decreased by about a quarter compared to last year. It rose during 2022, following the outbreak of the war between Russia and Ukraine, and the subsequent decline in Russian gas supplies, to which Europe was “addicted”. What are the dimensions of the decline of Qatar's gas imports to Europe? What are the most important alternative destinations?
Significant decrease
The US Bloomberg news agency reported a significant decrease in LNG shipments to Europe, coinciding with the decline in its prices compared to last year.
Qatar currently sends about 18% of its total gas production to Europe, an estimated decrease of 25% from last year, according to the agency's report published on June 1, 2023.
The factors of the war between Russia and Ukraine that broke out in February of last year 2022, and the tension in Western-Russian relations, led to a decline in Russian gas supplies to the old continent, and its prices reaching unprecedented levels.
This prompted European leaders to scour the world in search of alternative sources, in order to be able to attract a number of the most prominent suppliers of natural gas to the eager European market.
Gas prices fell
Qatar Energy Minister and CEO Saad Al-Kaabi said earlier during a press conference that the company will continue to supply gas to buyers in Europe, although long-term contracts include diverting up to 15% of shipments to other destinations at better prices, according to what was reported by the American agency.
According to al-Kaabi's statements, gas prices in Europe have since fallen to less than $27 per megawatt hour, a significant decline from last year's levels. However, the ban on diversions from Europe is no longer imposed.
Market data changes
Al-Kaabi added that “the data that prompted making certain promises, directing specific quantities to specific markets, no longer exists,” explaining that “prices have decreased, while quantities are available in the market, so the problem no longer exists as it existed in the past,” in A reference to the crisis of rising prices, and the needs of the market in Europe.
With regard to alternative destinations for Qatari LNG exports, China comes on top of the countries, followed by South Korea, according to data for the month of April, according to a separate report by the US Bloomberg Agency. Qatar and the United States of America are major suppliers of liquefied natural gas to Europe.
At the end of last year, energy prices in general and gas in particular fell by 50%, as the winter in Europe was relatively mild, and the Europeans were able to fill gas stocks. of these supplies.
