Qatar could provide Europe with emergency supplies of liquefied natural gas (LNG) in case Russia decides to cut supplies over the ongoing tensions with Ukraine, a Qatari source told Reuters on Thursday. However, he said that Doha would need Washington’s help in convincing natural gas buyers to re-route some of their supplies to Europe.
“Major Qatari gas customers will need to be persuaded by the US or others to allow to re-route their gas to Europe as a short-term solution,” the source said.
The news comes as Qatari Emir Sheikh Tamim bin Hamad Al Thani is scheduled to meet United States (US) President Joe Biden in Washington next week to discuss supplying LNG to Europe. On Wednesday, a source told The Guardian that talks between the US and Qatar have been going on for over two weeks and an announcement is expected next week.
He added that while Qatar can supply some of its LNG to Europe, the process would be “painful” for the small Gulf country. Qatar, which is one of the world’s top LNG producers, will not have sufficient spare supplies to provide to Europe as most of its LNG exports are contracted under long-term deals.
The US is working on finding Europe alternate energy sources if Russia cuts off natural gas supplies over the bloc's stance on the Ukraine crisis. LNG from Qatar is one option.
— TRT World (@trtworld) January 27, 2022
We look at a potential route Qatar's tankers could take pic.twitter.com/Fm9UxZuDNW
Moreover, most of Doha’s LNG exports are to East Asian countries and re-routing extra supplies meant for East Asia from Qatar to Europe can turn out to be a cumbersome process, as it would be plagued with supply chain and transportation constraints. “Politically, we are very keen to help both the US and Europe, but in reality, we cannot just walk away from our long-term commitments to Asia even if it is just for a short period,” a Qatari official told The Wall Street Journal on Thursday. He added that Washington “would have […] a lot of convincing” to do.
Europe fears that in case a war breaks out between Moscow and Kyiv, Russia would cut LNG supplies to Europe. Hence, they are looking for alternative suppliers of LNG.
Such an event would lead to an economic crisis since Russia controls over 40% of Europe’s natural gas supply and would create massive supply shortages, thereby, resulting in the skyrocketing of energy prices. So far, apart from Qatar, the US and Australia have vowed to supply LNG to Europe.
In recent months, the US and its European allies have raised concerns over a possible Russian invasion of Ukraine this year. US intelligence reports have indicated the presence of 175,000 Russian troops at the border with Ukraine, drawing parallels to Russia’s invasion of the Crimean Peninsula in 2014.