(Bloomberg) -- Qatar is sending less of its liquefied natural gas to Europe, where slumping prices have reduced its attractiveness as a destination for the super-chilled fuel.
Less than 18% of Qatar’s LNG output has sailed to Europe so far this year, down from 25% in 2022, according to ship-tracking data compiled by Bloomberg. It marks a change from last year, when gas prices soared on Moscow’s invasion of Ukraine and sent European leaders on a worldwide search to replace supplies from Russia.
At the time, Energy Minister and CEO of QatarEnergy Saad Al-Kaabi said the company would keep supplying buyers in Europe, even though its long-term contracts had the option to divert as much as 15% of its cargoes to destinations with better prices.
European gas prices have since tumbled to less than €25 ($27) a megawatt hour, a fraction of last year’s record, and the self-imposed ban on diversions from Europe no longer stands, Kaabi said at a press conference in Doha on Thursday.
“The data that made us make certain promises or direct certain quantities to specific markets no longer exist,” said Kaabi. “Prices have dropped and quantities are available. There is no problem in the market that existed previously.”
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