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.



IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."