Qatar, the world’s largest supplier of liquefied natural gas, said today that it cannot help mitigate the soaring gas market prices because it has distributed all its production and believes the price hike is destroying demand.
Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi said today, Monday, that his country has reached the maximum production level, and “we have provided all our customers with the quantities prescribed for them.”
He added that he expected a “slight decline” in gas prices due to the return of some stations and with Russia’s pledge to increase supplies to Europe, but the rise in prices is not a good thing.
“I am not happy about the high gas prices. They are negative for customers and customer satisfaction is the most important thing to me,” Al Kaabi added.
He added that the US market “will feel the pressure soon” and that customers are already feeling the impact by paying higher electricity prices.
“Even if I can take advantage of short-term rallies like these, I don’t like them because they are disruptive to demand, they hurt my clients who have to be fine for me to be too,” he said.
He added that countries that have already secured long-term gas supply deals are reaping the benefits of more stability and “much more reasonable” prices, in addition to long-term stability.
He added that Qatar Energy has some quantities that can be transferred from one market to another. He continued, “With these quantities, it is mainly market forces that drive them east or west.”
Qatar aims to increase LNG production to 127 million tons annually by 2027 from 77 million.