Main page > Comments > Fuel & Energy > Qatar competing against Gazprom

Qatar competing against Gazprom

According to January exports data posted by the International Energy Agency that includes supplies to European countries, members of the Organization for Economic Co-operation and Development (OECD), Gazprom substantially lags behind its most dangerous rivals, Norway and Qatar. Norway increased its exports in January by 31% compared to 2008, while Qatar's exports to Europe jumped five times. Decline in Gazprom's supplies looks especially impressive on this background - its January 2010 exports dropped by 5% against the January 2009 level. The reason for this decline is clear. Some time ago the USA managed to convince Qatar, the world's major LNG producer, (later other LNG producers supported that call) to build actively new LNG capacities targeting the growing US market. No scenario of a possible advance in the US domestic production was considered, that was why the shale gas revolution was a rather unpleasant surprise for Qatar and other LNG suppliers (Washington just advised them to accept the situation). In the hectic search for new buyers gas producers turned their eyes on Europe that, however, demanded a considerable price discount - this is why Qatari gas started beating Gazprom's gas. Yet, the situation is not so painful for the Russian gas giant. In absolute figures the Qatari supplies are not so large. In 2009 this Arab country raised gas exports to Europe by 114% to just 15.9bn cu m. This is a relatively small volume, but for adherents of the policy aimed at reducing the EU's gas dependence on Russia, in Washington, Brussels and some European capitals percentage points and tendencies are important, as they enable them to exert psychological pressure on Russia. This is why the main objective of active debates in the mass media about "Qatar beating Gazprom" is to try to convince Moscow of the existence of real possibilities for further (almost for decades) growth in LNG supplies to Europe at lower prices.

By Stanislav Mitrakhovich, NESF leading expert


Bookmark and Share

Analytical series “The Fuel and Energy Complex of Russia”:

State regulation of the oil and gas sector in 2023, 2024 outlook
Gazprom in the period of expulsion from the European market. Possible evolution of the Russian gas market amid impediments to exports
New Logistics of Russian Oil Business
Russia’s New Energy Strategy: on Paper and in Fact
Outlook for Russian LNG Industry

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

Rambler's Top100
About us | Products | Comments | Services | Books | Conferences | Our clients | Price list | Site map | Contacts
Consulting services, political risks assessment on the Fuel & Energy Industry, concern of pilitical and economic Elite within the Oil-and-Gas sector.
National Energy Security Fund © 2007

LiveInternet