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supply on the oil market.
The EU is seeking to sever energy ties with Russia permanently.
The EU will eliminate Europe's dependence on Russian fossil fuels during this decade, writesThe Guardian. It is noted that the EU expects Russian gas imports to fall to 40-45 billion cubic meters this year compared to 155 billion in 2021. In addition, the bloc of 27 countries has already imposed sanctions on the import of Russian coal and marine oil. "The worst of the crisis may be behind us, but there's no room for complacency. Energy markets remain vulnerable, fossil fuel subsidies have increased during the crisis, inflation remains high, and our critical infrastructure must be protected, including from sabotage," the European Commission stated. To replace Russian gas, EU countries have increased imports from other suppliers while reducing gas usage. Norway has replaced the Russian Federation as the largest supplier of pipeline gas to the EU, and imports of liquefied natural gas have increased sharply, mainly through supplies from the US.
9.1.1d LNG news
Qatar’s LNG boost still a few years away In recent months, QatarEnergy has signed several long-term deals to supply LNG in a growing sign that the country is set to be an even greater player on the global energy stage. To recap, the North Field is due to come online in Q4 2025 and over the course of roughly six months it will increase Qatar’s LNG production capacity from 77mtpa to 110mtpa, a 42% increase. By 2027, capacity will rise by a further 15% to 126mtpa, making Qatar the world’s largest LNG producer. In aggregate, the 27-year deals struck with Sinopec, China National Petroleum Corporation, Total, and Shell , to provide supplies from 2026 would account for just 12% of Qatar’s full capacity (of 126mtpa). For Qatar, this economic boost is a few years off. But when it does come, all else equal, we estimate the North Field will directly boost Qatar’s GDP by ~25% and indirectly will bolster the non-hydrocarbon sector as stronger state revenues could allow for looser fiscal policy.
The energy gap between Europe and Russia is growing. Qatar has signed its third gas supply contract with the EU, and Kazakhstan is negotiating a new oil route. After TotalEnergies and Shell agreed to buy LNG from Qatar, Italian energy company Eni agreed to a 27-year contract with QatarEnergy. The agreement is for one million tons of liquefied gas per year, with delivery to start in 2026. Gas will be delivered from the world's largest northern gas field in the Persian Gulf, which Qatar shares with Iran, to the floating Italia LNG terminal in Piombino (Tuscany) port. Meanwhile, as reported by the Ministry of Foreign Affairs of Kazakhstan, the country will start negotiations with the Croatian government to increase the export of Kazakh oil through the Adria oil pipeline. Currently, 70% of Kazakh oil exports go to the EU. Kazakhstan is
122 RUSSIA Country Report November 2023 www.intellinews.com