Energy prices soar and EU poses 'joint gas purchase'
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The Emir of Qatar is said to have offered to send liquified natural gas (LNG) cargoes to the UK after a meeting with the Prime Minister. Reports indicate that ministers held over a long-term arrangement where Qatar would become a “supplier of last resort”. It comes after increased global demands have seen prices skyrocket at the mercy of Russia, who have reportedly been turning the taps on and off periodically.
But Hugh Miles, founder of Arab Digest, says the UK can avoid the winter energy crisis that the EU is currently facing.
He told Middle East Eye: “The UK is not going to go to the Iranians or the Russians who have the world’s largest proven gas reserves, but to Qatar, which is third globally.”
David Roberts, an academic based at King’s College London’s defence studies department, said the talks between the UK and Qatar started “weeks ago”.
He added: “It was presumed Qatar would step in with more tankers. That has been the case to some degree, and it is not entirely surprising.”
While Westminister has denied such talks, experts say a long-term LNG deal with Qatar is not only likely, but inevitable.
Hugh Miles, the founder of Arab Digest, told Middle East Naser Tamimi, a Qatari energy expert, said: “If the UK doesn’t do it now, they will sooner or later. They have to.
“The Government doesn’t want to give the impression there is a crisis but if you see the figures, storage is low and everything else is low. They must be getting something from Qatar.
“Qatar would be absolutely thrilled to help, as they’d get good headlines and score points with the UK government and the [British] public.
“It is also a life insurance policy – it is politics, Doha is not interested in just making money.”
Qatar has long been a key supplier of LNG to the UK, peaking in 2011 with 98 percent of imports.
The UK then decided to diversify its supplies.
In 2019, Qatari LNG imports started to rise again, from 15 percent to 39 percent. By 2020, Qatari gas accounted for 48 percent of imports.
The UK currently gets less than three percent of its gas from Russia, compared to the EU’s 40 percent.
It comes as alarm bells are ringing throughout the bloc over its reliance on Russia, as well as Mr Putin using the Nord Stream 2 gas pipeline as a “geopolitical weapon”.
Professor Alan Riley, from the Atlantic Council, said: “It is hard to know whether Putin is leveraging the energy weapon to try to reverse Europe’s green deal or whether this is really about preparations for an attack on Ukraine.
But he warned Mr Putin that he needs to tread carefully if he wants to maintain control over the European energy market.
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He said: “But he has to be careful because if he plays this card [invading Ukraine], he can never play it again. Europe will redesign its energy system and stop buying Russian gas altogether.”
While the UK’s situation could become more comfortable with the reported offer from Qatar, the EU has reportedly not been given the same offer.
Brussels has put in a request for LNG with Qatar, but it was turned down due to an antitrust dispute over sales contracts.
According to the Telegraph, Westminster made a bet that the UK could easily get hold of LNG on the global market.
But a Government spokesperson said: “The UK government has not requested or secured any additional shipments from the Qatari government.
“Our gas supply remains secure, thanks to a diverse range of sources at home and abroad. We have more than enough delivery capacity to meet demand.”
But despite this response, several analysts have tipped that the deal with Qatar will still go ahead.
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