QP CEO: current gas prices are “unhealthy” for both producers and consumers

Qatar’s energy minister and chief executive of LNG giant Qatar Petroleum, Saad Sherida Al-Kaabi, said on Thursday that the current gas price levels are “unhealthy” for both producers and consumers.

Al-Kaabi said this during a virtual meeting with the EU Energy Commissioner Kadri Simson, according to a QP statement.

“While natural gas prices are an outcome of basic market fundamentals including supply and demand, the current price levels observed in global gas markets are unhealthy for both producers and consumers,” he said.

Discussions during the meeting dealt with various aspects of cooperation in the energy field between Qatar and the European Union, and means to enhance them, the statement said.

QP did not provide any additional information.

Asian spot LNG price surged to $56.326/MMBtu on Wednesday due to the gas price crisis in Europe, according to S&P Global Platts.

The price broke several records lately on surging European gas prices.

Dutch TTF gas price also reached several records. The November gas price currently trades at about 101 euros per megawatt hour.

QP is currently expanding its LNG production capacity. The state-owned firm announced a final investment decision on its $28.75 billion North Field East project earlier this year.

Under the project, QP will build four mega trains with a capacity of 8 million tonnes per year in the Ras Laffan complex.

This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 mtpa.

QP also plans a second phase to further boost capacity to total 126 mtpa by 2027, as well as additional expansions.

The company’s unit Qatargas already operates in total fourteen LNG trains at Ras Laffan.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Larsen & Toubro scores QatarEnergy LNG gig

A unit of India’s engineering and construction firm Larsen & Toubro has secured an offshore contract from LNG producer QatarEnergy LNG, a unit of QatarEnergy. This deal, worth more than $1.75 billion, is the largest single contract ever received by L&T.

QatarEnergy LNG carrier completes trials in China

A 174,000-cbm liquefied natural gas (LNG) carrier built as part of the massive QatarEnergy shipbuilding program has completed its trials in China, according to Hudong-Zhonghua.

Atlantic LNG shipping rates rise to $31,000 per day

Atlantic LNG freight rates rose to $31,000 per day this week, while European prices also increased compared to the prior week.