Qatar in deadlock over LNG deals

Mostafa Kamel

Since the World Health Organization (WHO) considered COVID-19 a global epidemic, Qatar’s regime has suffered a number of blows one after another. Qatar’s economy has been severely impacted as the small emirate was hesitant to recognize the coronavirus in a bid to maintain its economic projects.

Pakistan has recently suspended imports of liquefied natural gas (LNG) from Qatar in light of the present circumstances.

After such a blow, Qatar is seeking to bridge the economic gap following the suspension of LNG exports to Pakistan.

Qatar is defying all parties by dealing with China, despite the global crisis, by exporting LNG shipments to avoid the fall of Doha’s regime.

Pakistan’s government has decided to suspend imports of LNG from Qatar due to a significant decline in demand following the outbreak of COVID-19 pandemic in the country.  Pakistan’s government said it was under pressure to declare force majeure in its LNG deal with Qatar following a sharp decline in gas demand in the wake of lockdown due to coronavirus spread.

Petroleum Division is working with Pakistan State Oil (PSO) and two public sector gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Ltd (SNGPL) on a proposal for the federal government to declare force majeure in its long-term deal with Doha in order to halt LNG import that is expensive amid declining oil prices and lower demand.

After the blow from Pakistan, Qatar has been seeking to maintain its economic projects despite the coronavirus crisis. Qatar has resorted to China as an alternative to avoid big losses.

Qatargas Operating Company Limited announced Wednesday the delivery of the first cargo of liquefied natural gas (LNG) on a Q-Flex vessel to the Zhoushan LNG receiving terminal in China.

The Chinese terminal consists of two shore tanks, each having a capacity of 160,000 cubic meters.