Saad Al-Kaabi, the energy minister for Qatar, referred to the European suggestions to set a gas price cap as “hypocritical” and asserted that the free market is always the best course of action.
In an effort to lower the high energy prices that are subject to volatility, the European Commission intends to propose a ceiling for gas prices using a dynamic price mechanism this winter.
In an interview with the “Bloomberg” agency, Al -Kaabi, who is also the CEO of Qatar Energy Company, which is the largest LNG producer in the world, said that interference in the markets contradicts the rules of competition that Europe previously applied to the producers.
In addition, “determining the price of gas diminishes investment incentives in gas production, and some customers can be denied of supplies,” he continued, “the free market is always the best solution.
“Competitors “may draw the shipments that would have been heading to Europe with an additional penny,” according to Al-Kaabi.
The Qatari official explained the challenges that Europe is experiencing in the energy sector as follows: “If the winter is harsh and Russian pipeline flows drop below average levels, Europe’s problems will last until 2025.
” He pointed out that Qatar Energy Company is still negotiating with the German RWE AG and Uniper SE companies to supply LNG, and advanced talks are taking place with some Asian buyers.
Since Qatar’s gas output has been at its peak for years, European leaders’ attempts to acquire more gas supplies from Qatar this year have largely failed.
Qatar plans to expand its production capacity by more than 60% to 126 million tons annually by the end of the current decade by developing the northeast field.
Inventor: Bloomberg.
Qatar calls European efforts to set a gas price cap “hypocritical”
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