Qatar - Saudi crisis could affect world LNG market: Gazprom

The crisis between Qatar and some Gulf states could affect the global LNG market, according to Gazprom's Deputy CEO Alexander Medvedev.

Medvedev speaking in Moscow said there was a possibility that LNG markets could be affected, but added that, “It is too early to be certain.”

Qatar is one of the world's most important LNG exporters in terms of volume and in 2016 was the largest exporter of LNG worldwide by far with 77.2 million tonnes. Australia followed with 44.3 million tonnes and Malaysia with 25.9 million tonnes.

According to Wood Mackenzie, Egypt imported 4.1 million tonnes and the rest of the Middle East imported 2.7 million tonnes of LNG from Qatar last year. The biggest share was Japan's with 12.2 million tonnes.

Medvedev also referred to the ongoing negotiations with Turkey on natural gas. “"Turkey and natural gas dealers began negotiations when the prices were high in 2015,” he said adding that prices were at a low level now.

“We prefer that these negotiations be resolved without arbitration. We are continuing our consultations with the Turkish Ministry of Energy and state company BOTAS,” he said.

Around the time Russian President Vladimir Putin announced the TurkStream gas pipeline project at the end of 2015, Russia announced a 10.25 percent discount rate for gas exports to Turkey that was never implemented. BOTAS later took the issue to the court of arbitration.

“Maybe the developments that are occurring with TurkStream will help resolve commercial issues as well,” Medvedev added.

A lack of progress in the TurkStream project was put down to Russia's non-application of the gas price discount.