Qatar to Sue as Abu Dhabi Stops Liquids Imports

Qatar Petroleum (QP) is to sue Abu Dhabi National Oil Company (Adnoc) for declaring force majeure to halt shipments of condensate from Qatar, according to QP CEO Saad Sherida Al Kaabi.

Natural gas flows through the Dolphin pipeline from Qatar to Abu Dhabi remains unaffected; however, if the crisis with Gulf states escalate, Qatar would have the right to close it down, he told journalists at a news conference in the Qatari capital, Doha.

He reportedly said that it was Qatar, not Abu Dhabi, that was being blockaded and that the declaration was illegal as there was nothing stopping Adnoc from receiving the condensate, a liquid by-product of natural gas.

Several Arab states a month ago severed ties with Qatar over its alleged involvement with extremist organisations.

Qatar was subsequently presented with a list of demands it has to meet before relations with Saudi Arabia and other Arab countries – Egypt, Bahrain and the United Arab Emirates – may return to normal. These include closing down state broadcaster Al Jazeera. The four countries are due to meet on July 5 to discuss Qatar's response, delivered to the mediator, the Emir of Kuwait.

Only nine months ago, QP agreed to step up gas deliveries through the Dolphin pipeline to Abu Dhabi, one of the United Arab Emirates. 

QP earlier on July 4 flagged its intention to raise Qatar’s LNG production by 30% to 100mn metric tons/yr by 2025, from today's nominal 77mn mt/yr.

William Powell