As a result of a natural gas shortage in Europe, which has resulted in skyrocketing wholesale prices, the British government has approached Qatar to seek a long-term gas deal to help shore up supplies, the Financial Times reported.
According to the newspaper, British ministers met with their counterparts from Qatar, the world’s largest producer of liquefied natural gas, to discuss a long-term deal in which Qatar would become a ‘supplier of last resort.’
The reports said that Qatar has also rerouted four large tankers to the United Kingdom in the last two weeks. According to the Financial Times, which cited a source familiar with the discussions, the shipments were made after British Prime Minister Boris Johnson requested assistance from Qatari Emir Sheikh Tamim bin Hamad al-Thani at a recent meeting.
As economies reopened following the COVID-19 sanctions, the prices for natural gas have risen this year and high demand for LNG in Asia has pushed down supplies to Europe, causing shockwaves in industries that rely on electricity.
The energy sector in the United Kingdom is in shambles due to rising energy costs. CNG Energy Ltd, a British energy supplier, went out of business earlier this week, joining a list of 17 energy suppliers in the country that have gone out of business since September.
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