Page 13 - EurOil Week 14 2022

EurOil POLICY EurOil

EU closes probe into Qatar

Energy’s practices

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

Week 14 07•April•2022 www. NEWSBASE .com P13