Qatar's emir embarks on Spanish state visit

Spain has welcomed the emir of Qatar on a state visit to support strengthening energy trade between the two nations, Al Arabiya News reported May 17.

The visit is expected to lead to agreement on more than 10 economic and commercial contracts, most of which will relate to energy. Spain's head of state, King Felipe VI, held an official reception for the Qatari emir Tamim bin Hamad Al Thani earlier today.  Once he departs Spain, Qatar's emir will undertake further diplomatic missions to Germany, the UK and Slovenia. He will finish his European tour in Switzerland to attend the World Economic Forum from May 22 to 26.

Qatar regained its position as the world's leading LNG exporter from the US last month, having exported more than 7.5mn metric tons, and will expect to increase shipments as winter in the northern hemisphere draws nearer. Europe could offer opportunities in this regard, given the EU's pledge to reduce Russian quantities by one third before the end of this year. But the US has already promised Europe more LNG from its exporters, and Qatar will also be looking to satisfy Asia-Pacific's needs.

Qatari suppliers fulfilled around 4% of Spain's gas imports from overseas in April, Al Arabiya News said. However Qatar still trails the US, Algeria, Nigeria and Egypt in terms of market share.  

Bloomberg reported April 22 Qatar could look to expand its existing $30bn budgets for six new-build LNG plants, if the demand is strong enough. But if Qatar is to win more European customers, then Spain will be a key entry point for alternative supplies. The country hosts roughly a third of the continent's LNG import capacity across six terminals: at Bilbao (5.1mn metric tons/year,) Murgados (2.6mn mt/yr), Barcelona (12.6mn mt/yr), Cartagena (8.7mn mt/yr), Huelva (8.7mn mt/yr) and Sagunto (6.4mn mt/yr).