Potential Solutions for the Short to Medium-Term Natural Gas Shortage Issues of Europe: What Can Qatar Do?

Abstract

European countries are required to look for alternative gas suppliers to deliver energy security for Europe. Qatar has been proposed to be an alternative gas supplier; however, there are problems that limit Qatar from exporting more gas to Europe, namely: the limited LNG quantities available for export, the long-term fixed contracting strategy, and the lack of room to receive additional gas in European LNG terminals. As these problems are critical and limit Qatar from exporting more gas to Europe, this research aims to propose potential solutions to overcome them. The results show that to solve the issue of the limited LNG quantities available for export, Qatar can produce electricity from renewable sources and export the gas consumed for power production, and can produce renewable natural gas (RNG) from green hydrogen and captured carbon dioxide. Two BCM of natural gas can be exported if 15% of the electricity required is produced from renewables in Qatar. In addition, 0.45 BCM of RNG can be exported if Qatar uses its natural resources to produce 5000 MW of renewable power. Redirecting contracts coming to an end and increasing dependence on spot markets can resolve the issue of a long-term fixed contracting strategy. Finally, using floating import terminals may alleviate the problem of European LNG terminals running out of room to receive more gas.

Energy markets restructure beyond 2022 and its implications on Qatar LNG sales strategy: Business forecasting and trend analysis

“…Factors such as the influence of LNG development on the Qatari economy, the U.S. shale gas revolution, and the impact of the COVID-19 pandemic on the expansion plans were evaluated [ 28 , [116] , [117] , [118] ]. A recent study by Al-Breiki & Bicer [ 119 ] suggested short=to medium-term solutions to be considered by Qatar for tackling the European natural gas shortage after the Russian sanctions. To seize market opportunities, the authors proposed the domestic use of renewables for power generation and exporting natural gas to Europe.…”

Energy Security and Sustainability for the European Union after/during the Ukraine Crisis: A Perspective

“…Each country has particular legal and compliance standards for building and approving pipelines . The United States with Qatar coordinated a possible response; however, Qatar has long-term contracts with non-EU members and has a limited capability to ship natural gas to the EU in sufficient quantities . The problems are 2-fold: Qatar operates near its production (and, to a lesser degree, shipping) capacity.…”

“…11 The United States with Qatar coordinated a possible response; however, Qatar has long-term contracts with non-EU members and has a limited capability to ship natural gas to the EU in sufficient quantities. 12 The problems are 2-fold: Qatar operates near its production (and, to a lesser degree, shipping) capacity. There are, moreover, limitations in the number and types of specialty ships available to transport natural gas or liquified natural gas.…”