QP says regional, international operations undisrupted

QP says regional, international operations undisrupted

Jun 11, 2017
3 min read
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Qatar Petroleum, state-run energy firm, said it is carrying out normal operations despite the land, sea and air disruptions after neighbouring countries of Saudi Arabia, United Arab Emirates and Bahrain severed diplomatic and trade ties with the world’s largest liquefied natural gas producer and exporter.

Qatar Petroleum (QP), and its subsidiaries, affirm that it is conducting business as usual throughout all its upstream, midstream and downstream businesses and operations, and in all activities across all of QP’s world-class facilities,” the company said in a statement late Saturday.

QP said it is closely monitoring and assessing developments, and is prepared to take the necessary decisions and measures if needed, to fulfil commitments to customers, whether local, regional or international.

Saad Sherida Al-Kaabi, Qatar Petroleum’s President and CEO said “on behalf of Qatar Petroleum and our operating ventures, I would like to express our gratitude to all our valued customers, and in particular our LNG customers, and would like to assure them of our determined efforts to continue uninterrupted supplies as the world’s most reliable LNG supplier.”

Qatar is also a major exporter of natural gas by pipeline to neighboring countries.

Saudi Arabia, the UAE, Egypt and Bahrain said early last week, they would cut all ties including transport links with Qatar, the world's top seller of liquefied natural gas (LNG), accusing it of supporting terrorism. Qatar has backed Islamist movements but vehemently denies supporting terrorism.

While land borders with Qatar from Saudi Arabia were shut early last week, flights were halted between the five countries imbued in the political rift and vessels going to and from Qatar were temporarily restricted by UAE.

Dolphin pipeline, which links Qatar's giant North Field with the UAE and Oman, has seen undisrupted operations. It was the first cross-border gas project in the Gulf Arab region. It pumps around 2 billion cubic feet of gas per day to the UAE.

The diplomatic dispute has stoked concern that any supply disruption could spill over into global gas markets. Even a partial shutdown would force the UAE to seek replacement LNG supplies.

Qatar supplies roughly a third of global LNG - natural gas that has been converted into liquid form for export.

It listed out countries that depend on Qatar for meeting domestic energy requirements. 

Asia: Japan, South Korea, India, China, Pakistan, Taiwan, Thailand, Singapore, Malaysia

Europe: United Kingdom, Belgium, France, Italy, Turkey, Poland, Spain, Netherlands, Portugal

Americas: Argentina, Brazil, Chile, Dominican Republic, Mexico

Middle East: Kuwait, UAE, Jordan, Egypt