Page 14 - GLNG Week 14 2022

GLNG EUROPE GLNG

EU closes probe into QatarEnergy’s practices

PROJECTS & THE European Commission has closed an order, however, as the country typically accounts
COMPANIES investigation into LNG exporter QatarEnergy for about 40% of the gas that Europe consumes.
over possible anti-competitive practices, just as Qatari Energy Minister and QatarEnergy CEO
the EU is seeking help from Qatar in reducing its Saad Al-Kaabi told CNN in an interview on
reliance on Russian gas. March 25 that Russian supplies to Europe would
The probe began in 2018, and was focused not end overnight. Qatar has already commit-
on the destination clauses that are in QatarEn- ted to supply all current contracted volumes to The probe began
ergy’s long-term contracts with European buy- Europe, even when it could fetch a higher price
ers. The Commission was concerned that these for the supplies in Asia, in a show of solidarity, in 2018, and
clauses were “possibly preventing or limiting the the minister said.
free flow of LNG within the internal market, in QatarEnergy is currently producing at its was focused on
breach of EU competition rules. maximum capacity of around 78mn tonnes per
“Today’s closure decision is based on a thor- year. But this capacity is set to reach 110mn tpy the destination
ough analysis of all relevant evidence, including by 2025 or 2026, thanks to the $27bn North clauses that are
information received from QatarEnergy and the Field East project, which the company took a
European gas importers,” the EU executive said. final investment decision (FID) on last year. in QatarEnergy’s
“The Commission concluded that the evidence The as-yet-unsanctioned North Field South
collected did not confirm its initial concerns and project is expected to raise this further to long-term
has therefore decided to close its investigation.” 126mn tpy.
The EU and a number of European national The Commission launched its probe into contracts with
governments have held discussions with Qatar QatarEnergy’s activities just after ending a sev- European buyers.
in recent weeks in the wake of Moscow’s inva- en-year market abuse probe into Gazprom,
sion of Ukraine, which has prompted an unprec- accepting a pledge by the Russian gas giant to
edented push by Europe to cut energy ties with reform its pricing structure and allow rivals a
Russia. The bloc is aspiring to scale back Russian foothold in Eastern Europe. And just before the
gas purchases by as much as two thirds by the Qatari investigation was closed, the Commis-
end of the year, and phase out supplies from the sion reportedly raided the offices of Gazprom
country altogether by the end of the decade. subsidiaries in Germany over fresh claims of
Ending gas trade with Russia will be a tall pricing manipulation.™

P14 www. NEWSBASE .com Week 14 08•April•2022