US urges Qatar to challenge Russian gas

The US wants Qatar, the world’s biggest supplier of liquefied natural gas (LNG), to challenge Russia’s gas dominance in Europe, a US administration official said on Monday.

Deputy US energy secretary Dan Brouillette said that the US is talking with Doha about supplying Europe with LNG as it wants Germany and others to import gas from Qatar and the US rather than from Russia, which now accounts for 60% of German gas imports.

The US has warned German companies about possible sanctions over the Nord Stream 2 pipeline under construction, which will double Russia’s export capacity to Germany via the Baltic Sea.

Germany is Europe’s biggest energy consumer.

Brouillette, speaking in Doha, said he had discussed the issue with Qatar’s minister of state for energy affairs, Saad al-Kaabi, who is also CEO of Qatar Petroleum (QP).

“We are talking to minister Kaabi here about other markets, specifically Europe, to the extent that we can talk to the Qataris about supplying European markets with natural gas,” he said.

“They are very much interested in that and so are we — it’s very connected to deliberations with others we have around Nord Stream 2.”

The Nord Stream 2 gas pipeline will increase Germany and Europe’s dependence on Russian gas, but Germany recently decided to help fund LNG import facilities that could offset that dependence, he said.

Kaabi said in December that QP is looking to invest at least $20bn in the US over the coming few years and he expects to make a final decision on its investment in the Golden Pass LNG terminal in Texas soon.

QP is majority owner of the Golden Pass LNG terminal, with Exxon Mobil and ConocoPhillips holding smaller stakes.

“The Qatari investments in the Golden Pass, and in the US export facilities are very important to allow us to get that natural gas to Europe,” Brouillette said.

US President Donald Trump accused Germany in July of being a “captive” of Russia due to its energy reliance and urged it to halt work on the $11bn Nord Stream 2 gas pipeline.

Germany rejects this charge and says it is open to diversifying its energy sources but that sales will ultimately be determined on economic grounds.

Brouillette acknowledged that LNG will cost more than piped gas but said that LNG supplies from Qatar and other countries will help diversify supply sources to Europe.

“It is good for the national security of Europe,” he said. “Cheap gas comes at a high price of freedom.”

In September, Qatar said it will invest €10bn to strengthen its ties with Germany over the next five years.