Sempra Energy, the California utility and owner of three North American LNG export projects, said it signed an agreement to supply Saudi Arabian energy company Saudi Aramco with LNG from its proposed Port Arthur plant in Texas as well as equity investment in the venture.
The Dolphin Energy natural gas pipeline from Qatar to the United Arab Emirates experienced a major technical outage for several days last month and the Qataris reportedly made LNG supplies available to its neighour if needed and kept the impact to a minimum as a sign of improving relations.
The report by Qatari television quoting news agencies said the pipeline had now been fixed and pipeline gas supplies were flowing as normal.
The pipeline is 364 kilometres in length and supplies 2 billion cubic feet of natural gas per day from Qatar’s North Field to the UAE. The North Field is also the source of Qatar's annual LNG outut of 77 milliion tonnes per annum.
The Qatar-UAE pipleine is owned by Dolphin Energy, a subsidiary of the UAE oil and gas company, Mubadala Petroleum, and with minority stakes held by French major Total and Occidental Petroleum of the US.
“The pipeline encountered a major failure in Qatar’s territory in mid-April resulting in a shutdown of all of its facilities for several days,” said the Qatari TV report.
Analysts said the report was seen as Qatar saying to its Arab neighbours in the Gulf Cooperation Council (GCC) that it can be relied upon in a crisis and to meet contracts for energy supplies.
According to the report, the pipeline shutdown caused significant curtailment of gas supplies to the UAE for several days and Qatar Petroleum helped Dolphin Energy by supplying some repair materials and offering LNG supplies to make up for any shortages.
The GCC members are UAE, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. Since the dispute began no Qatari LNG cargoes were to be delivered to the UAE and Kuwait because of GCC transport sanctions against Qatar.
The embargo against Qatar was formally imposed in June 2017, though the Qataris said at the time they would not close the Dolphin pipeline, which would cause major disruptions to the UAE’s natural gas system.