EU Gas Market Transformations of 2022 and Policy Options for Low-Carbon Energy Trade Between The EU and Qatar

Volume 3|Issue 4| Nov 2022 |Reports & Policy Papers

Abstract

This policy paper takes stock of the major changes in the 2022 European gas trade and offers stakeholders in Qatar's gas industry three policy options to best adapt to the new situation and future needs. First, Qatar may continue to export Liquefied Natural Gas (LNG) and increasingly decarbonized energy resources, especially hydrogen, to EU member countries in the short- and long-term, starting with increasing LNG allocations alongside the use of renewables in the industry's gasification process, while simultaneously developing the production and export of ammonia, and the provision of blue and turquoise, then green hydrogen. Second, in a business-as-usual policy option, Qatar would remain focused on its LNG trade and provide the international market with an affordable LNG supply. The third policy option would be for Qatar to focus on its core LNG expertise by significantly developing its exports to emerging and developing economies. The authors believe that the first policy option holds the best opportunities for Qatar's economic sophistication, its image, and its international role.

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