Page 8 - MEOG Week 20 2022

MEOG POLICY & SECURITY MEOG

Germany, Qatar at odds in LNG talks

QATAR GERMANY and Qatar are at odds over contract destination clauses, which would restrict it from
terms over LNG supply, according to Reuters, in reselling spare Qatari cargoes elsewhere.
particular regarding the latter’s preference for LNG import projects have been discussed
long-term contracts with destination clauses. in Germany for many years, but after years of
Germany has no regasification capacity and languishing, they are now making fast progress
relies on pipeline gas imports, mainly from in the wake of Moscow’s invasion of Ukraine. A
Russia. But since Moscow began its invasion of total of four terminals have been proposed, with
Ukraine, the German government has embraced a combined capacity of more than 22 bcm per
LNG as the short-term means of phasing out year.
Russian gas imports as quickly as 2024. However, Qatar’s LNG export capacity is currently
it wants to achieve this without compromising 77mn tonnes per year and is fully utilised,
on its climate goals, which include slashing its although Doha is working on an expansion that
carbon emissions by 88% by 2040, and fulfill- would bring this to 110mn tpy by the middle of
ing practically all of its electricity needs through the decade. In the meantime, it may be able to
renewable power five years before that. ramp up supplies to Europe by diverting ship-
As such, Germany is reluctant to enter into ments that might otherwise have gone to Asia.
contracts of at least 20 years’ duration for LNG A second expansion plan is under consideration
supply from Qatar, as the kingdom would wish, that would raise the country’s capacity further to
according to Reuters. It is also against agreeing to 127mn tpy by the late 2020s.™

Iran considering possibility

of exporting gas to Europe

IRAN IRAN is considering the possibility of exporting Azerbaijan might be options as might shipping
gas to Europe, a deputy oil minister was on May gas in the liquefied form should the requisite
15 quoted as saying by Iran’s official news agency investments be made. Iran, however, is an ally
for energy news, Shana. of Russia and in recent years the two countries
“Iran is studying this subject but we have not have consulted closely on gas development and
reached a conclusion yet,” Majid Chegeni report- markets.
edly said. “Iran is always after the development Another consideration is that while Iran has
of energy diplomacy and the expansion of the enormous gas reserves, years of sanctions on
market,” he added. Tehran have resulted in huge under-investment
The signalling from Iran, a country that in developing Iranian gas fields.
boasts the second largest gas reserves in the Last year, the European Union received
world behind Russia, comes as Europe contin- around 155bn cubic metres of Russian gas,
ues to examine its options for ending its reliance accounting for 45% of its imports.
on Russian gas, in the wake of Russia’s invasion Chegeni was also reported as confirming that
in Ukraine. Tehran and Baghdad have signed a memoran-
Chegeni, however, did not discuss any infra- dum of understanding under which the Islamic
structure options for getting Iranian gas to Republic will this summer increase its gas
Europe. exports to Iraq in return for Iraq paying existing
The development of routes via Turkey or gas debts owed to Iran.™

P8 www. NEWSBASE .com Week 20 18•May•2022