It seems that saying goodbye to fossil fuels and energy independence promised by the European Union will gradually turn into a dream. Qatar, which will replace Russia in gas supplies, will this month sign important twenty-year contracts with two major European companies in the energy sector – Dutch Shell and French TotalEnergies. The purchase agreements have been criticized by environmentalists and company employees, who see them abandoning investments in renewable energy that Brussels has demanded and that Europe urgently needs to achieve energy autonomy and also a turning point. green.
instead of russia
Qatar will supply gas to oil giant Shell for the next 27 years. This is the second deal with a European company in a week, after France’s TotalEnergies signed a similar contract with the Gulf country. The latter quickly became the main contestant The United States decided to compensate for Russian gas supplies lost from Europe following the outbreak of the war in Ukraine, which accounts for approximately 40% of EU imports. These are two major, long-term agreements with Qatar, currently the world’s leading exporter of liquefied natural gas (LNG). More recently, the country has focused on long-term supplies to the Asian market, anticipating long-term agreements with China Sinopec and China National Petroleum Corporation (CNPC). With Moscow now out of action in relations with 27 member states, with some exceptions such as Austria, Doha has set foot on the old continent with its supplies. Already in November 2022, an agreement was signed between QatarEnergy and ConocoPhillips to supply gas for the next 15 years to Germany, which has been the main importer from Russia for years. Last year, Qatar was at the center of a serious scandal, dubbed Qatargate, over corruption of MPs and other corporate figures who were allegedly paid to remain silent on human and labor rights abuses over the 2022 World Cup. It is hosted in the country on the Arabian peninsula.
Renewable resources in the background
According to QatarEnergy’s statement, the agreement envisages Shell purchasing 3.5 million tons of LNG annually for 27 years. QatarEnergy chairman Saad al-Kaabi said in a statement released by the company that the contract would be evidence of Qatar’s commitment to “help meet Europe’s energy demand and strengthen energy security with a resource known for its outstanding economic and environmental qualities.” But these agreements appear to be in stark contrast to the European Union’s goals. Green Deal He promised to achieve a “zero emissions” target by 2050. The new climate commissioner, Dutch Wopke Hoekstra, who had to suffer a crushing defeat in recent weeks, is voicing his doubts about the appointment of members of the European Parliament due to the role he played at Shell in the past.
States’ reaction
Responding to criticism of the agreements with Qatar, the spokesman for Dutch Climate Minister Tim van Dijk claimed that the Dutch government aims to reduce gas demand, but will need this energy source as “renewable” in the near future. alternatives and infrastructure are not available enough.” In the statement made by the Ministry of Energy, Elysée stated that the agreement envisaged by TotalEnergies “is a commercial agreement between two companies and does not bind France, whose target is carbon neutrality in 2050.” Brussels does not approve of long-term contracts. because they risk blocking the free flow of gas in Europe.The European directive on the gas package also stipulates that the expiry date of the contracts cannot exceed 2049.
internal criticism
The words of two Shell employees in an open letter to the company recently, demanding that renewable energy investments not be reduced, confirm the contradictions of companies in the energy sector. Chief Executive Rael Sawan said in June that he planned to slow investments in renewables and low-carbon activities because revenue was needed. Just two years later, the company also gave up its role as global manager of renewable energy. “It has long been Shell’s goal to be a leader in the energy transition. That’s why we work here,” the two employees wrote in a letter to Sawan and the company’s board of directors, later complaining about the company’s exemptions. The letter sparked an internal debate, garnering over 80,000 views and thousands of likes from other employees. In recent months, Shell has abandoned offshore wind projects in Ireland and France and sold its energy retail business in the UK. According to industry sources cited by Reuters, evaluations include the complete or partial sale of the Sonnen battery storage company, which was acquired in 2019. Now news of the contract with Qatar has arrived.
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
