Egypt, UAE to replace LNG supplier due to Gulf Crisis

LNG

Two countries, U.A.E. and Egypt, that buy LNG from Qatar will have to find alternative stock, expert says.

Qatar’s LNG supplies to the United Arab Emirates (U.A.E.) and Egypt will likely have to stop, according to the Chief Executive Office of Dubai-based consultancy Qamar Energy, Robin Mills, on Friday.

Mills told Anadolu Agency that if direct LNG supplies from Qatari ports to the U.A.E, and Egypt cease due to the imposition of sanctions, both countries will need to find other alternative suppliers.

“Qatar’s shipping, including oil and LNG tankers, is being affected logistically by not being able to call at U.A.E. ports,” Mills said.

He noted, however, that pipeline gas supplies are safe for now from Qatar.

Qatar provides over 25 percent of the U.A.E.’s natural gas consumption.

“I doubt Qatar would cut it off unless they are really desperate, as it would be a very aggressive move and would badly damage their reputation with other suppliers,” he argued.

Five Arab states, including Saudi Arabia severed diplomatic ties with Doha on Monday, accusing it of supporting terrorism in the region.

Mauritania and Senegal followed suit, while Jordan downgraded its diplomatic relations with Doha.

Qatar, known as the world’s biggest LNG supplier, is ideally located to play arbitrage between the Atlantic and the Pacific basin.

In 2016, the country exported around 77 million tons of LNG, mostly to Asia.

(Source: AA Energy News Terminal)

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