Qatar says “almost impossible” to quickly replace Russian supplies to Europe

Qatar Petroleum CEO and Minister of State for Power Saad al-Kaabi speaks throughout a information convention in Doha, Qatar June 24, 2019. REUTERS/Naseem Zeitoun

DOHA/LONDON, Feb 22 (Reuters) – Neither Qatar nor another single nation has the capability to interchange Russian fuel provides to Europe with liquefied pure fuel (LNG) within the occasion of disruption because of a battle between Russia and Ukraine, Qatar’s power minister mentioned on Tuesday.

With most of Qatari volumes are locked into long-term contracts largely to Asian patrons, the quantity of divertable volumes that may be shipped to Europe is simply 10-15%, Saad al-Kaabi added.

Kaabi’s feedback renewed considerations over Europe’s safety of fuel provides as tensions escalated between Russia and Ukraine on Tuesday after Moscow ordered troops into two breakaway areas in japanese Ukraine. learn extra

“Russia (offers) I feel 30-40% of the provision to Europe. There isn’t a single nation that may substitute that form of quantity, there isn’t the capability to do this from LNG,” Kaabi instructed reporters at a fuel convention in Doha.

“A lot of the LNG are tied to long-term contracts and locations which can be very clear. So, to interchange that sum of quantity that shortly is sort of unattainable,” he mentioned.

The US and its European allies are set to announce contemporary sanctions in opposition to Russia after President Vladimir Putin formally recognised the independence of the 2 areas in japanese Ukraine. The sanctions might have an effect on the Russian stream of fuel into Europe.

Germany on Tuesday halted the Nord Stream 2 Baltic Sea fuel pipeline venture, designed to double the stream of Russian fuel direct to Germany. The transfer despatched fuel costs larger on Tuesday learn extra

Qatar and different nations reminiscent of Japan have lately been approached by america to reroute fuel provides to Europe in case battle escalates. learn extra

Sources instructed Reuters that Qatari LNG exports have been decrease over the previous few days as two of its mega trains have been down, one other issue that would restrict the spare quantity to be despatched to Europe. learn extra

Japan mentioned earlier this month it is going to divert some LNG cargoes to Europe after requests from america and the European Union. learn extra

Nevertheless, the few cargoes that arrived to Europe had been cargoes already scheduled below a joint venuture between Japan’s JERA and France’s EDF and there was no incremental added provide.

At the moment going through a chilly spell that has depleted LNG inventories, Japan is experiencing re-stocking demand and so it wants extra LNG provide.

“We’ve not seen something concrete occur to provide but. That would clearly change, however clearly, Qatar and Japan will probably be restricted of their capacity to assist with additional cargoes if Europe loses entry to Russian fuel,” mentioned Robert Songer, LNG analyst at commodities intelligence agency ICIS.

Reporting by Maha El Dahan and Andrew Mills in Doha, extra reporting by Isla Binnie in Madrid, writing by Marwa Rashad in London, Enhancing by Nina Chestney and Chizu Nomiyama

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