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.



British Assets Gain, Mid-cap Stocks Lead after Labour Election Win

A view of the Palace of Westminster which houses Britain's parliament, during the general election, in London, Britain, July 5, 2024. REUTERS/Hannah McKay Purchase Licensing Rights
A view of the Palace of Westminster which houses Britain's parliament, during the general election, in London, Britain, July 5, 2024. REUTERS/Hannah McKay Purchase Licensing Rights
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British Assets Gain, Mid-cap Stocks Lead after Labour Election Win

A view of the Palace of Westminster which houses Britain's parliament, during the general election, in London, Britain, July 5, 2024. REUTERS/Hannah McKay Purchase Licensing Rights
A view of the Palace of Westminster which houses Britain's parliament, during the general election, in London, Britain, July 5, 2024. REUTERS/Hannah McKay Purchase Licensing Rights

British domestic-focussed mid-cap stocks were the biggest gainers on Friday after the centre-left Labour Party surged to a comprehensive win in a parliamentary election with blue chip stocks, government bond prices and the pound higher.

Hopes that the incoming government will provide a period of economic stability after an often tumultuous 14 years of Conservative Party rule sent the FTSE 250 midcap index (.FTMC), up as much as 1.8% in early trading to its highest since April 2022.

The blue chip FTSE 100 index (.FTSE), was last up 0.2% and the yield on 10-year British government bonds or gilts, dropped 3 basis points to 4.17%, marginally better than other European markets, Reuters reported.

Labour won a massive majority in the 650-seat parliament while Rishi Sunak's Conservatives suffered the worst defeat in the party's long history as voters punished them for a cost of living crisis, failing public services, and a series of scandals.

"A landslide victory provides the sort of clarity and stability that equity markets need in an increasingly volatile world," said Ben Ritchie, head of developed market equities at abrdn.

"If the new government gets this right, businesses with significant exposure to the UK economy should be the likely winners - a shot in the arm in particular for companies in the FTSE 250 and FTSE Small Cap".

British home builders stood out, with an index tracking their shares up 2.3%.

"We think the formation of a Labour-majority government will have a positive impact on housebuilders and construction materials," said Aruna Karunathilake, portfolio manager at Fidelity.

"We expect Labour to reinstate housebuilding targets and perhaps also fund investment in local planning departments... That should alleviate builders’ concerns about planning bottlenecks impeding growth in the medium term."

Analysts at Goldman Sachs said that while Labour's manifesto policies imply relatively limited changes to fiscal policy they would modestly boost demand in the near term.

As a result, they raised their forecasts for British GDP growth by 0.1 percentage points in each of 2025 and 2026.