Qatar scandal gives Europe a big gas headache

The alleged Qatar corruption scandal engulfing the European Parliament could not have come at a more awkward time for gas-poor EU countries – and Germany in particular.

Gulf state at center of allegations of cash-exchange influence Hill EU democracy at its core. But as a major exporter of liquefied natural gas (LNG), Qatar is also key to Europe’s plans to tackle the energy crisis.

Qatar’s importance as a reliable source of gas is only going to increase in the coming months, if Belgian authorities formally implicate Doha in their ongoing corruption investigation, further complicating the diplomatic equation for EU countries. A layer will be added. Especially for Germany desperate to find alternative suppliers to Russia, the commotion highlights that, in a world of energy geopolitics, there are hardly any easy choices.

Total imports of Qatari LNG represent just under 5 percent of the EU’s gas imports so far this year, according to European Commission data. But Qatar’s importance to Europe’s energy security is set to grow due to the mega-expansion of Qatar’s LNG production capacity, with two major projects scheduled to be completed in 2026 and 2027.

Germany was in the first line. Berlin is one of the EU capitals most desperate to secure an alternative supply of gas, having been dependent on Russia for at least 55 percent of its supply before the war in Ukraine.

Last month German firms signed a 15-year gas contract with state-owned Qatar Energy and US firm ConocoPhillips that guarantees 2 million metric tonnes of LNG annually from 2026. This is the year the first phase of Qatar’s capacity expansion – a Persian Gulf development known as North Field East – comes on-stream.

“Several EU countries – such as Italy – are more interested in Qatari LNG, but most of them have discussed spot market deals” that would supply the gas immediately, reports Europe and the Gulf Research at the European Council Abroad. said fellow Cynthia Bianco at the Relations (ECFR) think tank. “Germany is the only EU country to have signed an important long-term energy agreement with Qatar.”

While the deal is good for energy security, it risks becoming an ethical nightmare for Berlin. Asked Tuesday after a meeting of EU energy ministers in Brussels whether “it was right to buy gas from Qatar if Qatar buys European lawmakers,” Germany’s Economy Minister Robert Habeck said the issues were “two separate issues”. to be considered as “things”.

He said, ‘Taking a bribe is a crime. “Trade with other countries must always be weighed against the moral consequences of what you enter into and at the same time you must see to it that you can ensure security of supply. And in this case, when it comes to gas purchases, Europe or Germany is interested in compensating for the loss of Russian gas. So I think we have to make a distinction between the two.”

In other words, energy security is too important for the European Parliament to be embroiled in a scandal. The Qatari government has previously denied any wrongdoing. Doha on Sunday counter strike against the allegations and accused Brussels of taking “discriminatory” actions against Qatar based on “false” information. In a statement reported by the media, a Qatari diplomat said that the European Parliament’s response to the scandal “could negatively affect … ongoing discussions about global energy poverty and security.”

However, that situation doesn’t wash with everyone. German Christian Democrat MEP Dennis Radtke Had earlier questioned gas contracts with the Gulf state and demanded a review of gas supply contracts.

The scandal could put further pressure on Germany’s ruling coalition, with the Greens finding themselves in the uncomfortable position of supporting deals for vital new fossil supplies – and the LNG infrastructure to import them. Asked whether Berlin should review its deal with Qatar, Rasmus Andresen, MEP and spokesman for the German Greens in the European Parliament, replied: “We currently look at everything related to Qatar in the European Parliament, And others should do the same.”

Fellow German Green MEP Heinrich Hahn said Qatari gas was “not a long-term solution” to Germany’s energy security, but “a lesser evil than Russia currently has.”

Germany is not the only EU country with deep energy ties with Qatar. French energy giant TotalEnergies holds significant stakes in both the North Field East LNG development, which it describes as the world’s largest LNG project, and its sister project, North Field South. Italy’s Eni also has a stake in North Field East.

ECFR’s Bianco said there would likely be “official diplomatic complaints” from EU countries if Belgian officials publicly implicated Qatar in the Brussels corruption scandal. He noted that energy ties with Qatar are largely with individual member states. But she predicted that the scandal could have the effect of delaying any steps towards a future energy partnership between the EU and Qatar.

Carl Mathieson and Gabriele Rinaldi contributed reporting.