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.

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