Russian gas supplies cannot be replaced overnight

HE Minister of State for Energy Affairs Eng Saad bin Sherida al-Kaabi said Qatar could not help immediately and no one could replace Russian supplies.
He also ruled out that the Ukraine crisis will fundamentally change the way oil and gas costs are paid in the long term.
In a plenary session titled “Energy Transition and Security: Meeting Demand in a Volatile World” as part of the 2022 Doha Forum on Saturday, SE al-Kaabi stressed that, particularly at this time, it is not possible to replace Russian gas since supplies from Russia are between 30 and 40% and gas projects take many years to come into production.
He added that Qatar is working to pump more supplies of gas to Europe through its stations in France, Italy and the UK, but volumes would remain small compared to Europe’s needs.
“We are working to increase gas volumes to Europe, whether that be by increasing stations’ capacity or shipping additional volumes from Qatar,” he added.
Noting that the agreement to supply Europe with an additional 15 billion cubic meters from the United States and other countries requires cooperation between all parties to implement it, he stressed that Qatar has a key role in securing liquefied natural gas for Europe games
He explained that Qatar is working with the United States to ship 70 million tons of gas to Europe by 2024 and 2025, noting that Qatar has contracts with many countries to supply it with gas and 85% of gas supplies went to Asia.
SE the minister said that Europe needs 7 or 8 years to keep its energy needs away from Russian sources, noting that Europe imports between 40-50% of its needs from Russia and that Russian gas cannot be replaced overnight .
Referring to the desire of European countries to diversify their energy sources and the consequent increase in prices, he added that long-term plans cannot be formulated based on the reaction to the temporary events related to the Russo-Ukrainian war.
He pointed out the difference between the mechanisms for handling supplies destined for the Asian continent and those for the European continent, as Qatar has long-term contracts with many Asian countries that receive 80% of Qatar’s gas supplies.
He stressed that alongside the war between Russia and Ukraine, the increase in prices in the global oil and gas market is primarily due to the imbalance between supply and demand, which is due to the lack of investment spending in this area, adding added: “It requires investment to make the production stable and continuous.”
TotalEnergies chairman and CEO Patrick Pouyanne said the company does not plan to write off its assets in Russia after the war in Ukraine like its international peers.
“For me it is a matter of accountability and responsibility of offshore stakeholders. Should I give them to Mr Putin for free because that means going today and giving my shares,” Pouyanne said.
Rather than a complete exit from Russia, TotalEnergies said it will no longer allocate capital to new projects in Russia and will not renew its Russian gas oil and crude oil supply contracts.
Pouyanne said European gas prices would continue to rise until a decision is made that Europe will use the fuel for the long term, which would attract investment.
He said the way to control price increases is to accept the need for gas as part of the energy mix for years to come.
He added it was inevitable that Europe, which is around 30% to 40% dependent on Russian gas, would seek other suppliers, requiring costly investments in infrastructure such as LNG terminals.

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