🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Exxon says Qatar LNG not affected by Arab states tension

Published 06/06/2017, 20:43
Updated 06/06/2017, 20:50
© Reuters. Logos of ExxonMobil are seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba
MAERSKb
-
XOM
-
COP
-
NG
-

By Ernest Scheyder

(Reuters) - Exxon Mobil Corp (N:XOM) said on Tuesday that production and exports of liquefied natural gas from Qatar have not been affected by rising diplomatic tensions in the Middle East.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt on Monday cut ties with Qatar, accusing the country of supporting extremism. Qatar denies the allegations.

The growing diplomatic rift has raised concerns about global access to Qatar's LNG, especially after some regional ports in the Persian Gulf said they would not accept Qatari-flagged vessels.

Commodities traders have grown concerned Qatar's LNG could be barred from Saudi Arabia or from traversing Egypt's Suez Canal, though so far no limitations have been imposed.

Maersk (CO:MAERSKb), the world's biggest container shipping line, said on Tuesday it can no longer transport goods in or out of Qatar in the wake of the diplomatic rift.

Qatar and Exxon have had development agreements for more than a decade, with Exxon helping Qatar to become the world's largest LNG exporter. Exxon, working with government-controlled energy company Qatar Petroleum [QATPE.UL], has invested in LNG-processing plants, transport ships and related infrastructure.

The pair, which earlier this year were awarded a contract to explore for gas off the coast of Cyprus, also control the Golden Pass LNG facility in the United States with ConocoPhillips (N:COP).

Despite the diplomatic tension with other Arab States, a key Qatari gas export pipeline to the United Arab Emirates is still operating. Exxon said its production and export of LNG from Qatar have not been affected.

"As a matter of practice, we don't comment on matters between governments," Exxon spokesman Alan Jeffers said in a statement to Reuters.

Exxon has said that a large portion of its Qatari LNG production is under long-term supply contracts, meaning the company must supply gas from Qatar or some other source. Exxon does have a large LNG operation in Papua New Guinea.

Qatar has reassured clients in Japan and India that LNG shipments will not be affected by the tension.

© Reuters. Logos of ExxonMobil are seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba

Shares of Texas-based Exxon rose 1.3 percent to $81.19 in Tuesday afternoon trading.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.