Thanks to gas, Qatar has become richer and richer

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 The fact that Europe is trying to find new gas sources to replace Russian natural gas due to the bans related to Moscow's military campaign in Ukraine is considered an opportunity for Qatar.


As the plane descends into Doha, passengers can gaze down upon the brand new 80,000-seat stadium rising in the middle of the desert, which will host the 2022 World Cup final in December.


And importantly, they could see another striking image: oil tankers lining up in the Persian Gulf to collect liquefied natural gas (LNG).


Football and fuel may not have much in common, but Qatar is combining the two to give the country an unsurpassed influence in the global marketplace.


As the World Cup brings international prestige to Qatar, gas fuels expectations of becoming a "big player" in this field for this small country, especially when Russia is struggling due to sanctions.


Higher oil prices give Middle Eastern oil producers a great advantage, such as Saudi Arabia and Kuwait, but the financial and geopolitical advantage lies with Qatar. That makes 2022 not only the year Qatar makes its mark in sports history, but also helps one of the wealthiest countries in the world strengthen its influence in a way that just a year ago no one else. can be expected.


According to Bloomberg, Qatar's energy exports have reached $100 billion this year, the first time since 2014. This fact helps them invest more in global stock markets and pursue policies towards foreign countries, mainly through a national investment fund worth 450 billion USD.


Europe's thirst for LNG began after Qatar began a $30 billion project to boost exports by 60 percent by 2027.


Rising demand means more competition among buyers for long-term supply contracts and most likely better terms from Qatar.


"It's an incredible opportunity. Qatar will be one of the most important gas exporters, a market that will probably be very strong for many years to come," said Karen Young, senior fellow at the Middle East Institute in Washington (USA), said.


Seize the opportunity


It was a turning point for Qatar, a country with a population of less than 3 million. Saudi Arabia, the United Arab Emirates (UAE) and their allies have spent more than three years trying to squeeze economically because of their close proximity to regional Muslim groups and Iran.


The Covid-19 pandemic caused gas prices to drop to record lows. But prices have more than quadrupled in the past year, primarily due to a rebound in demand after the pandemic and conflict in Ukraine.


Emir Sheikh Tamim bin Hamad Al Thani is a leader who is very welcomed by the US as well as European countries.


At a White House meeting with President Joe Biden in late January, weeks before the outbreak of hostilities, both leaders discussed "ensuring the stability of the global energy supply." .


President Biden has called Qatar "a major non-NATO ally" for helping the US evacuate from Afghanistan, prioritizing gas in the negotiations. That contrasts with tensions between the White House and Saudi Arabia and the UAE because the two countries have refused to increase oil production and lower prices.


According to Citigroup, the $200 billion economy will grow 4.4% this year, the highest rate since 2015. GDP per capita will grow to nearly $80,000, up from levels in places like the Cayman Islands and Switzerland.


According to Ziad Daoud, Head of Emerging Markets Economist at Bloomberg Economics, this is a lucky time for Qatar, which could see a new engine of growth this decade.


The question now is what Qatar will do with its LNG production. Because according to the statistics, the country not only dives deeper into the global stock markets, but also foreign policy efforts are not always suitable for its allies in the world. America and Europe.


Much of the money will be used to support Qatar's sovereign wealth fund, which will enable the Qatar Investment Authority (QIA), which is a major investor in companies from Barclays Plc to Volkswagen AG as well as real estate. properties in New York and London, rapidly boosting tech stocks.


Qatar could also use the funds to further its goals in the region. Last month, the government pledged to invest $5 billion in Egypt. It is part of a plan by Gulf states to support the North African nation, which has been hit hard by rising food prices since the Ukraine war began.


Qatar's importance to the world gas supply has come a long way. Qatar's principal reserves are in the North Field, a massive offshore drilling rig extending into Iranian waters that Shell discovered in 1971 but soon abandoned. Gas does not have much value, especially when it is too far away to be easily distributed to major markets.


In the 1990s, Qatar's financial situation was strained as its oil production and prices fell. Currently, Qatar cannot produce enough to meet the needs of Europe, which gets about 40% of its gas from Russia.

However, future profits are clear. Morgan Stanley forecasts the European pivot will boost global LNG consumption by 60% by 2030. Goldman Sachs forecasts spot gas prices in Asia and Europe to be as high as $25/million Btu in at least next year.

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