Qatar has been approached by the United Kingdom for a long-term gas deal to help it stabilize supplies as a natural gas shortage in Europe has led to soaring wholesale prices.
Energy demand has increased as the global economy has recovered from the pandemic’s lockdowns. The unexpected demand for natural gas caught the energy industry off guard, and prices skyrocketed.
The British government and Qatar, the world’s largest producer of liquefied natural gas (LNG), have met to discuss a long-term deal that would make Qatar a “supplier of last resort.”
The country, to a large extent, phased out coal for power generation and built up capacity in renewable energy, particularly offshore wind. These actions reduce greenhouse gas emissions and help in the fight against global warming. However, the closure of coal plants, along with the eventual shutdown of the country’s old nuclear plants, has made Britain reliant on gas for about 40 percent of its electricity, significantly more than any other fuel.
Earlier this week, CNG Energy, a British energy supplier, ceased trading, following 17 other energy companies in the UK that have crashed since September. CNG Energy provided services to around 41,000 non-domestic customers, who are the most to get affected and who would be contacted by other suppliers.
Companies that produce fertilizer, steel, glass, and other goods that require a lot of electricity are also being harmed by the high costs. Britain, whose electricity system is mainly reliant on gas, is taking the brunt of the hits. creating major headaches for the government of Prime Minister Mr. Boris Johnson.
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