Qatar, the world's largest supplier of liquefied natural gas (LNG), has reportedly claimed that it has completely ‘maxed out’ the nation’s LNG production capacity, as ongoing energy shortages trigger widespread blackouts across some countries and put pressure on consumer budgets.
According to reports, the Qatar government supposedly informed its consumers that it is helpless in the fight to lower energy prices.
The global economic recovery following the lifting of COVID-19 lockdowns has revealed a scarcity of natural gas inventories as well as other fuel supplies.
To keep factories running and households warm, industry leaders and governments are being forced to pay substantially higher energy prices and also resort to the use of the most polluting fossil fuels, oil and coal.
Crude futures rose to multi-year peaks at the beginning of the week, as some generators reverted back to to burning oil, with experts anticipating that prices will remain strong.
LNG prices, which fell to record lows during pandemic lockdowns, have risen to historic highs this year, while Qatar has stated it has no supply available to calm the market.
Saad al-Kaabi, Qatar's Energy Minister, expressed his dissatisfaction with the high prices of gas, stating that the country has maxed out it capacities and has provided its customers their respective due quantities
Globally, soaring fuel prices are putting pressure on industry and governments, which has cautioned of job losses and expenses being passed on to customers and consumers.
Steelmakers in the United Kingdom have stated that they may have to shut down production and risk severe repercussions unless the government intervenes.
According to the UK’s Prime Minister Boris Johnson's spokesperson, the government was listening to business concerns and debating whether additional action was required.
Meanwhile, in Spain, Sidenor, a local steelmaker announced that it has already halted operations at a facility near Bilbao, North of Spain after rising energy costs boosted overall costs of production by 25%.
China, the world's second-biggest economy and top exporter, has attempted to increase coal supply, but the largest provincial economy in China's northeast rustbelt reported on Monday that electricity shortages were growing more severe.