IEA Admits Concerns over Qatar's Isolation
(7.40am GMT, 8.40am UK time, 9.40am Paris time)
The embargo on trade with Qatar imposed by several of its neighbours is "a major concern for IEA member countries", admits a senior director of the Paris-based agency.
Qatar, Australia and the US will account for nearly 60% of global LNG supply in 2022, according to the IEA’s Gas 2017 report published July 13 (see separate article). The report does not include any of Qatar’s planned 30% expansion of its LNG exports to 100mn mt/yr (138bn m3/yr) in its projection, as it judges that would come onstream in 5 to 7 years – so after 2022.
IEA director of energy markets and security Keisuke Sadamori told NGW at an embargoed press briefing July 11: “The expansion projects by Qatar, even if they go well, are expected to be completed after the projection period covered by our report – so we have not included any of the quantities.”
Asked for an estimate of how much investment would be required for Qatar’s ambitious plans and how easily it could be mobilised, Sadamori said the IEA was not in a position to comment.
“But the current difficult situation surrounding Qatar ... may have an impact, which we need to monitor. This is a major concern for IEA member countries, so we have been tasked [by them] to continue monitoring what’s happening there.”
He was referring to the situation whereby Saudi Arabia, UAE, Bahrain and Egypt are denying entry to and from their ports and territory to Qatar.
As a former deputy director general of policy at Japan’s ministry of trade and industry (Meti) and former adviser to that country’s PM, Sadamori knows the importance of Qatari LNG to the energy supply of Japan, South Korea and India – each of which imported 11-12mn mt from Qatar in 2016. However at present, there is no disruption to Qatar's LNG trade with the rest of the world, with piped gas flows even continuing to the UAE.
Japan and South Korea are long-established IEA member countries, as is the UK which imported over 7mn mt of Qatari LNG last year. India and China are among six nations to have gained associate membership since 2015.
Mark Smedley