After competing with the United States, will Qatar win the battle for global energy sovereignty?

The search for alternatives to Russian energy resources in the wake of the war on Ukraine gave Qatar a major boost in its quest to develop a major gas field and enhance its influence in global energy flows.

In a report published by the British Financial Times, writer Tom Wilson says that Qatar has consolidated its position in global commodity markets since it began exporting liquefied natural gas for the first time more than two decades ago, but in the wake of the Russian war on Ukraine and the conclusion of With a series of deals to develop a new gas field, the Gulf state's influence on international energy flows is expected to increase even further.

In recent weeks, the state-owned Qatar Energy Company announced joint venture agreements with five major international oil companies to develop a massive $29 billion project known as the Northeast Gas Field.

This project aims to increase Qatar's annual export capacity supply from 77 million tons to 110 million tons by 2026, helping it to overtake Australia as the second largest gas producer after the United States.

Deals with British Shell, Exxon Mobil, American ConocoPhillips, France's Total Energies and Italy's Eni were in the pipeline. years ago and not as a result of a desire to find alternative energy supplies in the aftermath of the Russian war.

However, the fact that major Western energy companies have been so eager to join the project is evidence of Qatar's growing importance as a gas superpower. The competition is a milestone for us."

Strengthening Qatar's position

Qatar discovered the North Field, one of the world's largest gas reserves that it shares with Iran, in the northeastern Arabian Gulf in 1971, and delivered its first shipment of liquefied natural gas to Japan in 1996, and by 2010, Qatar was the largest supplier of gas liquefied natural gas in the world, producing 55 million tons that year, according to Wood Mackenzie.

According to Carol Nakhleh, CEO of consultancy Kristol Energy, after competing for the top spot with Australia and the United States for a decade, the turmoil caused by the Russian war helped Qatar reassert its importance.

She considered that the high demand for non-Russian gas created a new scene.

, it now has an opportunity to restore its position in the international arena as an important player in gas markets and also through improving relations with the West.

Qatar had been striving since the 1990s to develop its first project in the North Field and transferred its gas wealth to its sovereign wealth fund, boosting the country's international standing by making high profile investments such as the 2011 deal to buy Paris Saint-Germain football club.

In fact, the gas revenues will help finance the cost of hosting the 2022 FIFA World Cup in November, the first time a major international football tournament has been held in the Middle East.

Historically, Qatar sold most of its LNG to Asian facilities under long-term contracts and became a reliable supplier, according to Frank Harris, LNG expert at Wood Mackenzie.

This may help calm concerns in some European capitals as they prepare to search for other alternatives to Russian energy, and although about two-thirds of Qatar's exports are destined for Asian countries under long-term contracts, Qatar is keen that the supply split for the Northeast Field project is more balanced. About half of the production flows to Europe.

Qatar Energy Company aims to reduce carbon emissions at its liquefied natural gas facilities by 35% by 2035 (Qatar press)

United States competition

Harris noted that "

," and Leo Kabosch, an analyst at Energy Aspects, explained that Qatar's geographical location made it more suitable than the United States to supply Europe and Asia.

In the midst of the search for alternatives to Russian gas, Germany said in May that it had signed an initial energy agreement with Qatar that would serve as a “passage” to the largest economy in Europe, despite continuing discussions between Qatar Energy and German companies, and days later, the Qatar Investment Authority pledged to invest 10 billion dollars. Pound sterling in the United Kingdom, referring to the strengthening of relations between Doha and London.

Among the challenges faced by European buyers is that Qatar has traditionally preferred long-term contracts that provide for a fixed destination, rather than the flexible contracts offered by US producers that allow the buyer to ship fuel anywhere and are generally preferred in Europe.

European buyers are also believed to be more reluctant to sign up to 25-year contracts due to their uncertainty about the gas's future role, while most leaders hope to get their way in achieving carbon neutrality.

Exxon, Total, Eni and other international partners will play a critical role by helping to market the additional supplies.

According to Harris, "

," adding that it was also "making a huge effort" to reduce greenhouse gas emissions.

Qatar Energy aims to reduce carbon emissions at its LNG facilities by 35% by 2035 through carbon capture technology to ensure a market for its gas sales even if its customers reduce their emissions to zero by 2050.

"The energy transition will take some time and LNG will be the most important energy resource, so companies and importers, whether they are in Europe or Asia, have an important need for a regular and reliable supply," Kaboush said.