The US wants Qatar, which is the leader on LNG supply globally, to compete Russia’s gas dominance in Europe, according to Reuters. The US are under conversation with Doha about supplying Europe with LNG, as it wants Germany and other countries to import Qatari and US gas rather than from Russia, which now accounts for 60 percent of German gas imports, as reported by Deputy U.S. Energy Secretary Dan Brouillette.
Mainly, the US informed German companies about possible sanctions over the Nord Stream 2 pipeline under construction which will double Russia’s export capacity to Germany via the Baltic Sea.
In addition, Mr Brouillette quoted in Reuters that he has been talking with Qatar’s Minister of State for Energy Affairs Saad al-Kaabi, who is also chief executive of Qatar Petroleum (QP).
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He continued stating that Nord Stream 3 pipeline would rise the dependency of Germany and Europe on Russian gas. However, Germany recently decided to help fund LNG import facilities.
Also, Reuters reports that Qatar Petroleum is interested in investing the minimum of $20 billion in the US in the future. QP is majority owner of the Golden Pass LNG terminal, with Exxon Mobil and ConocoPhillips holding smaller stakes.
Prior to the US-Russia challenge, US President Donald Trump, accused on July 2018, Germany of being ‘captive’ of Russia due to its energy reliance and advised Germany to shut down the $11 billion Nord Stream 2 gas pipeline.
Germany rejected the accusations and stated that it’s open to have a variety of energy sources. Yet, the country highlighted that sales would be determined on economic grounds.
Furthermore, Brouillette supported it that he is aware of the fact that LNG is much more costly than piped gas but stated that LNG supplies from Qatar and other countries would help diversify supply sources to Europe.
In September, Qatar said it would invest 10 billion euros to strengthen its ties with Germany over the next five years, including the possible creation of a LNG terminal.
Concluding, both OPEC countries stopped output from the jointly run oilfields – Khafji and Wafra – in the so-called Neutral Zone more than three years ago, cutting some 500,000 barrels per day or 0.5 % of global oil supply.
