QatarEnergy is set to become the world’s largest buyer of US liquefied natural gas (LNG) by 2033, as the war on Iran has severely disrupted Qatar’s energy exports to global markets.
QatarEnergy signed two agreements on October 22 and 29 that will increase by 7 million tonnes per year the volume of US LNG it can resell to international customers.
“We are pleased to further enhance our global supply and trading portfolio with another long-term purchase of LNG from the US. These additional volumes make QatarEnergy the largest buyer of LNG from the US, and place us in a stronger position to meet the global growing needs for LNG,” Minister of Energy in Qatar and President and CEO of QatarEnergy Saad al-Kaabi said.
The Financial Times reported that QatarEnergy finalized the agreements as the country struggles with disruptions to its energy shipments after the Iranian retaliatory strikes and the closure of the Strait of Hormuz which forced Qatari LNG shipments down by more than two-thirds. Before the war on Iran, Qatar was the world’s second-largest LNG exporter.
The agreements will allow QatarEnergy to resell an additional 7 million tonnes of US LNG annually to its international clients, as the war has smeared Qatar’s reputation as a reliable energy supplier. The country is also facing tens of billions of dollars in losses due to missed sales.
Rather than shipping the gas to Qatar, QatarEnergy plans to resell US LNG directly to countries dependent on imports, as crossing the Strait of Hormuz can be risky, according to the newspaper.
By purchasing gas from the US and reselling it to international customers, the company aims to maintain supplies despite disruptions to its own production and exports.
In March, QatarEnergy confirmed that extensive damage to its production facilities at Ras Laffan Industrial City would take years to repair. The company said the missile strikes on March 18 and 19, were expected to result in approximately $20 billion in annual lost revenue, with repairs potentially taking up to five years.
Al-Kaabi also initially estimated that repairs would take between three and five years. However, in September and again in late October, he revised the timeline, claiming the repairs would take approximately three years.
The US-Israeli war on Iran began on February 28, when the aggressors launched an unprovoked attack on the country. The US has emerged as a major beneficiary of the war, expanding its role as a global LNG supplier.
Qatar is one of the world’s leading natural gas exporters, yet its national energy company is committing to substantial purchases from the United States over a period extending decades into the future.
By weakening competing producers, disrupting their infrastructure and threatening the routes through which their resources reach customers, the US strengthens the position of American exporters while increasing the dependence of other countries on its supplies.
This makes it easy to access the Press TV website