QatarEnergy Has No Intentions to Increase EU Gas Supply Next Winter

Qatar Energy CEO and Qatar's State Minister for Energy Saad al-Kaabi speak during a news conference (Reuters)
Qatar Energy CEO and Qatar's State Minister for Energy Saad al-Kaabi speak during a news conference (Reuters)
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QatarEnergy Has No Intentions to Increase EU Gas Supply Next Winter

Qatar Energy CEO and Qatar's State Minister for Energy Saad al-Kaabi speak during a news conference (Reuters)
Qatar Energy CEO and Qatar's State Minister for Energy Saad al-Kaabi speak during a news conference (Reuters)

QatarEnergy is working on expanding its gas production and trading operations as global demand surges and will not divert liquefied natural gas (LNG) contracted with Asian buyers to Europe this winter, announced CEO Saad al-Kaabi.

Qatar is already among the world's top LNG exporters, and several European states, facing a spike in energy prices and a fuel supply crunch, have been in talks with the Gulf Arab state to reduce their reliance on Russian energy supplies.

Kaabi, also State Minister for Energy, said that Qatar is committed to respecting its contracts, adding that "when we sign with an Asian buyer or European buyer, we stick to that agreement."

"So, the volume that will go to Europe is what has been assigned," he said, adding that as far as "taking from Asian buyers to take to Europe (that) will not happen."

Kaabi said that the state-owned QatarEnergy, which earlier this year signed deals for stakes in its LNG expansion project, aims to become the biggest LNG trader through organic growth, adding that it is already working on forming trading teams.

"We're just going to keep building that organically. So, we're not looking at acquiring a company or anything like that," he said.

Qatar is working to consolidate its position as a top supplier as Europe is racing to provide alternatives to Russian pipeline gas that comprises almost 40 percent of the continent's imports.

The supplies have declined since the Russian invasion of Ukraine in February and subsequent Western sanctions against Moscow.

The North Field expansion project, divided into two phases, includes six LNG trans that will ramp up its liquefaction capacity from 77 million tons per year to 126 million tons per year by 2027.

QatarEnergy signed agreements to sell stakes in the North Field East expansion phase with TotalEnergies, Shell, Exxon, ConocoPhillips, and Eni. It announced last month that TotalEnergies would be the first partner in the North Field South project.

"Total is a very important company for our partnership here," Kaabi said. "Internationally, we're in many places together, in exploration, and you'll see us soon going into more areas together."

Kaabi spoke after the inauguration of the al-Kharsaah solar power plant project, a joint venture between QatarEnergy, France's TotalEnergies, and Japan's Marubeni.

QatarEnergy had reserved land for future expansion of the 800 megawatt-peak plant, said Kaabi.



Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.