Liquefied natural gas (LNG) prices, which fell to record lows amid the pandemic, have surged to record highs this year, but the country has no reserves to bring the market back to normal pricing. This was stated by the Minister of Energy of Qatar, Saad al-Kaabi.
“Our stocks have been depleted as we have shipped to all our customers what we should have,” the minister said, adding that he had vainly expected gas prices to drop slightly following an increase in LNG production and amid promises from Russia to increase pipeline supplies. gas to Europe.
According to the minister, the hardest lesson from the impending crisis will be learned by countries that have not signed long-term agreements on gas supplies. Those who manage to reach long-term agreements with energy suppliers today are reaping the benefits of more stable and "much more reasonable" prices in addition to long-term stability.
In September, Saad al-Kaabi said that, in his opinion, the current high gas prices reflect a lack of investment, as well as a shortage of supplies, but added that he did not consider the situation a crisis.
“All of our clients are in great demand and unfortunately we cannot satisfy everyone. Unfortunately, in my opinion, this is due to the fact that the market is not investing enough in the industry, ”the Qatari minister told reporters on the sidelines of a conference in Dubai.
Qatar is the world's largest supplier of liquefied natural gas and aims to increase production to 127 million tonnes per year from 77 million tonnes by 2027. According to analysts, natural gas will remain part of the energy transition and will be needed for at least several decades.
UK Metallurgists Today said that they may have to close production and face dire consequences if the government does not provide urgent assistance to the sector.
On Sunday, the British government said it was developing ways to support energy-intensive industries, but declined to say what measures were being considered.