Neither Qatar nor any other single country has the capacity to replace Russian gas supplies to Europe with liquefied natural gas (LNG) in the event of disruption due to a conflict between Russia and Ukraine, Qatar's energy minister said on Tuesday.
With most of Qatari volumes are locked into long-term contracts mostly to Asian buyers, the amount of divertable volumes that can be shipped to Europe is only 10-15%, Saad al-Kaabi added.
Kaabi's comments renewed concerns over Europe's security of gas supplies as tensions escalated between Russia and Ukraine on Tuesday after Moscow ordered troops into two breakaway regions in eastern Ukraine."Russia I think 30-40% of the supply to Europe. There is no single country that can replace that kind of volume, there isn’t the capacity to do that from LNG," Kaabi told reporters at a gas conference in Doha.
"Most of the LNG are tied to long-term contracts and destinations that are very clear. So, to replace that sum of volume that quickly is almost impossible," he said. The United States and its European allies are set to announce fresh sanctions against Russia after President Vladimir Putin formally recognised the independence of the two regions in eastern Ukraine. The sanctions could affect the Russian flow of gas into Europe.
Germany on Tuesday halted the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to Germany. The move sent gas prices higher on Tuesday
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