QatarEnergy Seeks Buyers for November Oil Cargoes Amid Regional Disruptions
··2 min read
QatarEnergy has issued a tender to sell crude oil for November loading, offering al-Shaheen, Qatar Land, and Qatar Marine grades on a free-on-board basis from Qatar. Bids are due Wednesday. This is the second such tender since the Iran war began, following a previous offer in June for July and August loading.
Other Middle Eastern producers have also recently offered crude through tenders. In June, Iraq's state oil marketer sought buyers for Basra Heavy and Basra Medium crude for July loading. Kuwait Petroleum Corp offered crude for the same month, and Abu Dhabi National Oil Co. (ADNOC) sold at least 48 million barrels through three tenders.
The Iran war has significantly impacted Qatar's energy exports. Two of Qatar's 14 LNG trains and one of its two gas-to-liquids (GTL) facilities were damaged, with repairs expected to sideline 12.8 million tons per year of LNG for three to five years. This has led to a loss of supplies to Europe and Asia, as well as a declaration of force majeure on long-term contracts for LNG supplies bound for Italy, Belgium, South Korea, and China.
QatarEnergy's CEO and state minister for energy affairs has reported that the Iran war has knocked out 17% of Qatar's liquefied natural gas (LNG) export capacity, resulting in $20 billion in lost annual revenue. The implications of these losses range from LPG used in restaurants in India to South Korea's chipmakers that use helium.
Qatar's exports of condensate are expected to drop by around 24%, while liquefied petroleum gas (LPG) will fall 13%. Helium output is expected to fall 14%, while naphtha and sulphur will both drop by 6%.
**Context:** The tender comes amidst ongoing supply disruptions in the Gulf region due to the Iran war, which has affected Qatar's energy exports significantly. The war has not only impacted Qatar's LNG export capacity but also led to a loss of supplies to key markets in Europe and Asia. The tender offers a glimpse into how QatarEnergy is navigating these challenges and seeking to maintain its crude oil sales amidst regional disruptions.
