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The US is in talks with Qatar over a gas supply to Europe if Ukraine invades

The US is in talks with Qatar and other major gas suppliers to prepare for an emergency if the Russian invasion of Ukraine disrupts European shipments.

Negotiations with Qatar and EU member states, which focus on increasing maritime resources, have come to a close with the recent security talks between Washington and Moscow.

This has added to the anxiety of conflict which could hit natural gas at a time when Europe is already experiencing tremendous prices. However, officials have warned that there is no “magic wand” to solve a potential problem with a continent that already has a powerful problem.

“We are seeing what we can do to prepare for the event, especially in the very cold winter [European natural gas] goods instead, “said a US official.

“We have discussed what can be done to move the market, which will help. . . things that we can now prepare to be sent if the problem gets worse ”.

Tensions between the West and Russia escalated as Moscow sent about 100,000 troops to the Ukrainian border. The US has threatened serious sanctions against Russia in case it attacks, with some senior officials criticizing the Kremlin for using gas.

Fatih Birol, chief of the International Energy Agency, said last week that Russia was exporting gas to Europe at the time of the “great geopolitical conflict”.

There are fears that the crisis could lead to a decline in gas prices in Europe, which is compounded by rising living standards and rising inflation as gas prices rise. With very low gas emissions during the year, officials fear that Europe could face industrial disruption, power outages, or the loss of heaters if Russian supplies dropped sharply after the attack.

Chief Executive Officer Joe Biden acknowledged that existing agreements between LNG retailers and Asian buyers could hamper efforts to move to Europe.

“There is no magic wand,” he said. “It’s all very complicated, very complicated. Looking to do this based on how markets work, how words work, how goods work.”

He added that it was clear that Russia had been squeezing gas in recent months to benefit major European heads.

“This is not a market problem we are facing. This is not a market thing. This is a changed market, “he said.

Europe’s dependence on Russian gas has made it difficult to negotiate a treaty against Moscow’s threats.

While many observers expect Russia to refrain from completely exporting goods, there is concern that Moscow could also squeeze more supplies, or that Ukraine’s gas supplies could be damaged by the conflict.

Electricity regulators have also warned of possible consequences of US sanctions after Biden this week said sanctions could include stopping Russian banks from taking action. US dollars – major global trade finance.

A senior energy producer said Europe could face higher costs in the event of a crisis that would require the government to take action to acquire LNG offshore equipment.

“They have to compete for everything in the market, to import goods from Asia, and the result is what the taxpayer will have to pay,” the chief executive said.

“It would be like buying PPE at the beginning of the epidemic, governments should intervene.”

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