Daily Energy Report
Qatar LNG exports to EU, German crude imports, WoodMac predictions, India oil imports, Japan energy strategy, China EVs impact oil, Russians expand nuclear, Ukraine gas contract, and more.
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Chart of the Day: What if Qatar Stops Exporting LNG to the EU in Retaliation for New Regulations that will Increase Costs Significantly?
Reuters: Qatar Vows to Stop EU Gas Sales if Fined Under Due Diligence Law, FT Reports
FT: Qatar Will ‘Stop’ EU Gas Sales if Fined Under Due Diligence Law
Summary
Figure (1) shows EU LNG imports by country of origin in 2024. Most of the EU imports of LNG came from the US, Russia, and Qatar. About 11% of total LNG imports come from Qatar. If Qatar stops exporting LNG to the EU today, LNG prices will increase substantially and Europe (not only the EU) will suffer from gas shortages simply because there are no alternatives to Qatari gas. But since the implementation of the proposed EU directive is in 2027, there will be plenty of alternatives when the time comes, mostly from the US. The EU cannot impose the same regulations on US LNG.