BAKU, Azerbaijan, May 27. As the number of those European countries that refuse to buy Russian gas increases, Qatar’s share of liquefied natural gas (LNG) exports to the West is expected to surge, Trend reports via Country Risk & Industry Research from Fitch Solutions.
According to Fitch Solutions, Qatar, being one the largest global LNG suppliers, strives to massively increase its LNG exports by 2025 through North Field Expansion project.
Meanwhile, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani has already visited Germany and signed an energy partnership agreement, which seeks to focus on the development of trade relations in LNG, hydrogen, and renewable energy. Qatari side says that LNG exports to Germany may begin as early as 2024 when Germany plans on bringing two new LNG terminals of 18 billion cubic meters (approximately 20 percent of Qatar’s current gas production) into operation, the research said.
“Since no specific contracts or volumes have been agreed at present, we note that new supplies from Qatar are not guaranteed and also remain contingent on Germany constructing its new import infrastructure in a timely manner,” Fitch noted.
However, amid Europe’s low-carbon energy ambitions, Qatar’s LNG exports may be held back. According to the data, Qatari LNG exports to Europe accounted for 20.7 percent in 2021, which is less than over 2020 (28.4 percent), and 2019 (30.2 percent). Although, as the European buyers are aimed at decreasing their dependence on Russian gas, Qatar’s LNG market share should spike.
“Many markets in Europe have ongoing ambitions to reduce their dependence on fossil fuels and transition to renewable fuels, meaning that securing contracts with Qatar could prove challenging for those wary of committing to long-term LNG supply agreements in light of growing climate change concerns,” Fitch Solutions said.
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