Saudi beef with Qatar may be about gas not terrorism

https://www.rt.com/business/391069-qatar-saudi-arabia-gas-dispute/

Saudi Arabia’s dispute with Qatar is said to date back to 1995 and stems from the country’s success in liquefied natural gas (LNG) production. LNG has given Qatar greater independence from Riyadh and has aligned Doha with Saudi Arabia’s arch-enemy Iran.

The LNG revolution made Qatar one of the world’s richest nations with an annual per-capita income of $130,000. The country also became the largest exporter of LNG.

Qatar’s offshore North Field, which provides all the country’s gas, is shared with Iran. Qatar also hosts US Central Command and bought a $2.7 billion stake in Russia’s oil major Rosneft.

“Qatar used to be a kind of Saudi vassal state, but it used the autonomy that its gas wealth created to carve out an independent role for itself,” said Jim Krane, energy research fellow at Rice University’s Baker Institute, in Houston, Texas told Bloomberg.

“The rest of the region has been looking for an opportunity to clip Qatar’s wings,” he added.

On Monday, Saudi Arabia, Egypt, Bahrain, the United Arab Emirates, Yemen and other countries cut diplomatic ties with Qatar, accusing the country of supporting terrorism.

LNG wealth has allowed Qatar to form foreign policy, independent from the Saudis.

Riyadh has accused Doha of backing the Muslim Brotherhood in Egypt, Hamas in the Gaza Strip and armed groups opposed by Abu Dhabi and Riyadh in the Libyan and Syrian wars.

Moreover, Saudi Arabia and other Gulf countries have seen a surge in LNG demand to produce electricity. As Qatar has the lowest extraction costs, the Saudis have to rely on higher-cost LNG imports.

“You can question why Qatar has been unwilling to supply its neighboring countries, making them gas poor, There probably was an expectation that Qatar would sell gas to them at a discount price,” Steven Wright, Ph.D. Associate Professor at Qatar University told Bloomberg.

Qatar’s Foreign minister said on Tuesday Doha was ready for mediation efforts to ease the Gulf rift.

Kuwait’s ruler Sheikh Sabah Al-Sabah has announced he will travel to Saudi Arabia on Tuesday to mediate an end to the feud.

———-

one thing we know..its not about terrorism the way they are playing it to the public..

Qatar used to be a kind of Saudi vassal state, but it used the autonomy that its gas wealth created to carve out an independent role for itself,” said Jim Krane, energy research fellow at Rice University’s Baker Institute, in Houston, Texas told Bloomberg.”

401

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~ by seeker401 on June 13, 2017.

5 Responses to “Saudi beef with Qatar may be about gas not terrorism”

  1. http://www.voltairenet.org/article196617.html

  2. Ah you remember?
    http://www.reuters.com/article/us-russia-rosneft-privatisation-insight-idUSKBN1582OH
    Who’s in it ? ;p

    Kabuki

    • More than a month after Russia announced one of its biggest privatizations since the 1990s, selling a 19.5 percent stake in its giant oil company Rosneft, it still isn’t possible to determine from public records the full identities of those who bought it.

      The stake was sold for 10.2 billion euros to a Singapore investment vehicle that Rosneft said was a 50/50 joint venture between Qatar and the Swiss oil trading firm Glencore.

  3. Unfortunately, Qatar is seen as breaking away from the policies of Saudi Arabia and seen as a threat to the hold that the KSA Family have over the region and people. If you have weak economy in the Middle East then KSA will support the country. But there is a clause, you do what we say and do not criticise our ruling.

    Well Qatar has wealth and is striving forward with the build of its country and government to be a leader in the middle eastern political world. This actually scare the Saudi ruling family. Iran will never be accepted by the Saudi Family and used as their propaganda on terrorism. Unfortunately the biggest support of extremist groups is the KSA Ruling Family and America. They gave then the voice on the global stage.

    https://wordpress.com/posts/homelessglobalspectator.wordpress.com

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