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Europe and China to purchase more gas from Qatar

Europe and China to purchase more gas from Qatar Photo: Europe and China will buy more gas from Qatar to replace Russian gas (GettyImages)

QatarEnergy, the Qatari state corporation, is preparing to sign new contracts for the supply of liquefied natural gas (LNG) to China and the European Union, reports Bloomberg.

One of the world's largest LNG exporters, QatarEnergy, already has a 27-year contract with China's CPCC. Following this, there are plans to enter into a similar agreement with Sinopec, the second-largest oil and gas production company in China in terms of volume.

In addition, agreements are being planned with major European companies including:

  • French TotalEnergies,
  • Italian Eni,
  • British-Dutch Shell,
  • American companies ConocoPhillips and ExxonMobil.

All of them previously obtained shares in the North Field gas reservoir, from which gas will be supplied to their clients.

Gazprom gas deliveries dropped to the levels of 1975-1980 last year. The corporation pumped only 28 billion cubic meters into its largest sales market. Approximately 22 billion cubic meters were sold to China by Gazprom.

In 2024, the deliveries via Power of Siberia may increase to around 30 billion cubic meters, but even when the pipeline operates at full capacity - 38 billion cubic meters per year - it will compensate for just over one-fifth of the former exports to the European Union.

In 2024, the Power of Siberia gas pipeline may deliver around 30 billion cubic meters of gas.

Even at its full capacity of 38 billion cubic meters per year, the Power of Siberia will only be able to compensate for just over 20% of the volume of gas that was previously exported to the European Union.

Sanctions against Russia on gas

Earlier, we reported that, according to Bloomberg, US sanctions have disrupted the Kremlin's energy project.

In November of last year, the Arctic LNG-2 project was included in the list of US sanctions for Russia's production and export capabilities in the energy sector.