EU ends antitrust case into Qatari LNG deals

The European Commission reported on March 31 it had closed its antitrust investigation into LNG supply contracts between Qatar Energy and European importers, after concluding they did not breach EU competition rules.

The announcement came two days after the commission reportedly raided the offices of Gazprom over allegations that the Russian gas supplier had abused its dominant position in the European market, including by withholding supply to jack up prices. 

The commission launched its investigation of Qatar Energy in 2018, over concerns that the destination clauses in its contracts with European buyers were "possibly preventing or limiting the free flow of LNG within the internal market, in breach of EU competition rules."

"Today's closure decision is based on a thorough analysis of all relevant evidence, including information received from Qatar Energy and the European gas importers," the EU executive said. "The commission concluded that the evidence collected did not confirm its initial concerns and has therefore decided to close its investigation."

The EU has reached out to Qatar in the hope of securing additional LNG supply that it can use to curb its reliance on Russian gas in the wake of Moscow's invasion of Ukraine. The bloc is hoping to phase out Russian gas as fast as it can, targeting a reduction in imports from the country of as much as two thirds within a year.

Russia typically supplies around 40% of the gas that Europe consumes. In an interview with CNN on March 25, Qatari energy minister and Qatar Energy CEO Saad Al-Kaabi said Russian supplies could not be replaced overnight. Qatar has already committed to supply all current contracted volumes to Europe and not divert them to other markets such as Asia, even if prices there are higher, as a show of solidarity.