Qatar stands out as a diplomatic power

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Qatar remains by far the largest exporter of liquefied vegetable fuel (LNG) in the Middle East and one of the three smartest countries in the world, along with the United States and Australia. But at the same time, since Russia’s invasion of Ukraine in February 24, 2022, it has carried out something akin to a geopolitical miracle. He has triumphed over common obstacles to become the region’s most reliable mediator on both sides of the geopolitical divide: the United States and its allies on the one hand, and the Sino-Russian government on the other. axis and its allies on the other. He even managed to do so without angering former Middle East mediator Saudi Arabia, despite Qatar being subject to a spiteful diplomatic embargo imposed through Riyadh from 2017 to 2021, at which point the Emirate also withdrew. of the OPEP. La critical importance of LNG to the global energy market and the likelihood of new conflicts arising in the Middle East due to the ongoing war in Ukraine mean that even greater responsibility will fall on the tiny emirate in 2024.

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At this point in 2022, before the United States dramatically increased its own LNG production to become the world’s most sensible supplier, Qatar was the world’s most sensible exporter, ahead of Australia. As things stand, the Emirate will account for around 40% of all new LNG materials globally through 2029, according to comments from its government last week. These projections are in line with independent industry figures, and the massive production increase is expected to come from the ongoing expansion of its North Field projects. This 6,000 square kilometer box is one of the two boxes that constitute the largest fuel depots in the world. The other 3,700 square kilometer segment is Iran’s South Pars fuel depot, which accounts for around 40% of the Islamic Republic’s total fuel reserves, estimated at 33. 8 trillion cubic meters (m3), and around of 75% of its fuel production. Qatar’s North Field expansion program will see six new major developments at North Field East (NFE) and North Field South (NFS) through 2029. Four new ‘trains’ (production facilities), each with 8 million metric tons per year (mtpa) – will be built at the NFE site and two (with the same production capacity) at the NFS site, with a total of 48 mtpa of new LNG production.

The division of Qatar’s LNG resources to foreign powers both before and after Russia’s invasion of Ukraine in 2022 has been a masterclass in global diplomacy and has done much to cement its growing reputation as the Middle East’s ‘honest broker’ between the superpowers. Both before, during, and after the start of Russian hostilities in Ukraine on 24 February that year, the Emirate had concluded multiple long-term LNG supply deals with China. However, the end of March 2022 saw the first of a series of strategically crucial meetings for the U.S. and its allies with senior representatives from Qatar aimed not only at securing vital LNG supplies urgently for the West and East but also at moving the Emirate more decisively into the U.S.’s sphere of influence. Following one such meeting in March between Qatar’s Emir, Sheikh Tamim bin Hamad Al Thani, and German economy minister, Robert Habeck, U.S. President Joe Biden reiterated his view expressed in January of Qatar as a “major non-NATO ally”. Following this, July 2022 saw QatarEnergy sign partnership contracts for the North Field East expansion project with the U.S.’s ExxonMobil and ConocoPhillips, the U.K.’s Shell, Italy’s Eni, and France’s TotalEnergies. QatarEnergy then also signed similar deals for the North Field South expansion project with TotalEnergies, Shell, and ConocoPhillips.

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The enormous degree of US trust in Qatar was also demonstrated by the fact that Qatar was assigned the role of key mediator in the deal announced on 9/11, which freed five Americans of criminal offenses in Iran. . This deserves to have been a preview of conceivable progress toward a new “nuclear deal” that has been under discussion for two years between the United States and Iran. Such an agreement deserved to have constituted a US diplomatic counterpoint to the resumption, on March 10, of the relationship agreement between Iran and Saudi Arabia, negotiated through China. It would also have eased pressures on oil prices by returning approximately 3 million barrels per day of Iranian oil and equivalents to the prevailing oil market. Qatar further demonstrated its bravery to the United States when it agreed to freeze $6 billion in Iran’s budget in exchange for American criminals. The freeze was a reaction to Iran’s reaction to the Oct. 7 killings, rapes and kidnappings of Israeli civilians through the Tehran-backed Palestinian terrorist organization Hamas.

By Simon Watkins for Oilprice.com

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