Page 124 - RusRPTNov23

The German government is facing some serious criticism after it was discovered, that a state-owned company has re-engaged in liquefied natural gas trade with Russia. Securing Energy for Europe GmbH (SEFE), a former unit of Russian gas giant Gazprom, plans to load LNG produced at the Yamal plant in Siberia early next month. Germany nationalized SEFE last year at the height of Europe's energy crisis. Although the cargo is headed for India, a German state-owned company doing deals with Russia is causing some alarm. Critics now want to know why Germany is allowing the shipment if its position for months has been to avoid Russian LNG. “It must be urgently clarified here who in the German government knew about these deals,” Constantin Zerger, head of the energy climate department at the Environmental Action Group, said in a statement. “The trade in Russian LNG must be stopped immediately.”
The decades-long LNG deals preferred by Qatar — which vies with the US as the world’s top LNG supplier — have become more attractive after Russia’s invasion of Ukraine upended energy markets and prompted European nations to prioritize security of supply over green targets. The 27-year contract announced last week by TotalEnergies means that France will continue using the fossil fuel beyond 2050.
Qatar is expected to increase its LNG-producing capacity by 64% to 126mn tonnes a year by 2027. Gas price volatility is burnishing the appeal of that output, although some buyers prefer the more flexible delivery terms of LNG from the US, which played a crucial role in filling the hole left by Russian pipeline flows in Europe last winter.
Qatar has so far contracted out about a third of its new capacity, announcing 15.3mn tonnes of annual LNG deals with China, Germany, Bangladesh and France. However, the so-called North Field East expansion is slated for 32mn tonnes per year, while the extension dubbed North Field South will bring another 16mn tonnes a year.
Out of two-phase expansion, international companies are entitled to as much as 12mn tonnes a year, the equivalent of a US-sized LNG project. QatarEnergy will hold 75% equity in both phases.
Five international majors have been selected for North Field East: Shell, TotalEnergies SE, ConocoPhillips, Eni and Exxon Mobil. Shell, TotalEnergies and ConocoPhillips have been selected for the smaller North Field South phase.
Qatar has also booked regasification capacity in the UK, France and Belgium until 2050, also reserving import terminal space in Belgium and France and holding stakes in facilities in Italy and Britain. QatarEnergy also needs
124 RUSSIA Country Report November 2023 www.intellinews.com