Monday, December 19, 2022

ENERGY 'HEADACHE' IN EUROPE DUE TO QATARGATE

 Filenews 19 December 2022



The Qatargate corruption case under investigation is not only shaking institutions in Brussels, but is creating a headache for European countries that need to import large quantities of gas - and Germany in particular.

The Gulf state is at the centre of accusations of bribery of European officials in order to channel their influence at the European level in favour of Qatar. However, the Arab state is a key exporter of liquefied natural gas (LNG), which plays a key role in Europe's plans to tackle the energy crisis.

As Politico points out, Qatar's importance as a reliable gas supplier will increase in the coming months, making the diplomatic equation difficult for the countries of the European bloc if the Belgian authorities formally involve Doha in the corruption investigation. Especially for Germany, which is desperately trying to find alternative suppliers to Russia, the uproar highlights that, in the world of energy geopolitics, there are rarely easy options.

Since the start of 2022, the EU has procured from Qatar 5% of its total LNG needs. However, Qatar's importance for Europe's energy security will be inflated thanks to its ambitious increase in LNG production capacity with two huge projects expected to be completed in 2026 and 2027 respectively.

On the counterattack, Doha

The EU's energy security is too important to "get into the equation" of Qatargate. Doha denies any illegal activity and on Sunday, in a statement, went on the counterattack accusing Brussels of discriminating against Qatar on the basis of "inaccurate" information. In a government statement broadcast by local media, a diplomat from Qatar warned that the European Parliament's reaction to the case could affect... negatively the ongoing discussions on the global energy crisis and security.

In particular, last Thursday, MEPs voted almost unanimously in favour of a text in which they "call for the suspension of the credentials of Qatari interest representatives" for the duration of the investigations into the case. The decision rests with the President of the European Parliament, Roberta Metsola.

"The decision to impose such a discriminatory restriction on Qatar, limiting dialogue and cooperation before the end of the legal process, will have a negative impact on regional and global security cooperation, as well as on ongoing discussions on global energy scarcity and security," the Qatari diplomat said, hinting that there may also be consequences for negotiations and agreements concerning the supply of natural gas in EU LNG form.

Doha regretted "the judgments based on inaccurate information revealed by leaks," the diplomat continued, noting that the criticism is "exclusively" directed against his country, while others are involved. Qatar denounced the lack of cooperation from the Belgian government, which it described as a "close partner".

Germany and energy giants

The scandal could significantly affect Germany by putting intense pressure on the governing coalition, in which the Greens have found themselves in the uncomfortable position of approving deals on new fossil fuel supplies, as well as LNG infrastructure and the import of liquefied natural gas. Asked if Berlin should reconsider its deal with Qatar, Rasmus Andresen, an MEP and representative of the German Greens in the European Parliament, replied: "We are currently looking in the European Parliament at everything related to Qatar, and others should do that."

The German Green MEP's colleague Henrike Hahn said Qatar's gas "is not a long-term solution" to Germany's energy security, but "for now it is the lesser of two evils compared to Russia".

In addition, the German Christian Democrat MEP had Dennis Radtke previously raised objections to the gas contracts concluded by the EU with the Gulf State and called for their revision.

Germany is not the only EU country with close energy ties with Qatar. French energy giant TotalEnergies holds significant stakes in both the development of North Field East LNG, which it has described as the world's largest liquefied natural gas project, and North Field South. Italy's Eni also participates in North Field East.

Cinzia Bianco of the European Council on Foreign Relations (ECFR) said that if Belgian authorities publicly implicate Qatar in the corruption scandal, "official diplomatic complaints" from EU countries will likely follow. Energy ties with Qatar are mostly maintained on a bilateral basis by the bloc's member states, Biance added. But he predicted that the scandal could result in the energy partnership between the EU and Qatar being put on ice.

Source: Capital.gr