Energy: agreements between Pakistan and Russia and between Qatar and Europe

Pakistan is diversifying its energy sources and has just started importing Russian gas and oil, which poses technical, financial and political challenges. According to some analysts, Pakistan does not have sufficient technical capabilities to refine heavy Russian crude oil (oil with a density above 0.884 or 0.875 g/cm3, depending on the taxonomy). Pakistani refineries can refine light crude oil imported from the Persian Gulf. Pakistan’s decisions are being closely monitored by Western countries, led by the US, which may impose sanctions for Pakistani rapprochement with Russia and may refrain from providing financial assistance.

The Bulgarian authorities decided to introduce high transit fees of EUR 10.20 per MWh of natural gas flowing through the so-called Balkanski Potok – the Bulgarian extension of the TurkStream gas pipeline to Western Europe. The Bulgarians expect additional revenues of EUR 1.2 billion. Serbia and Hungary protested against the new fees because they mean significant increases in gas prices imported by these countries through that pipeline.

Qatar, competing with the USA to replace gas supplies from Russia to Europe, has just signed two contracts to supply LNG to the old continent. As part of the agreement between QatarEnergy and Shell plc, LNG will be delivered to the Netherlands from 2026, and the agreement signed between Qatar Energy and TotalEnergies ensures LNG supplies to France. The contract to supply gas to the Netherlands will last 27 years, which means it is potentially contrary to the EU’s goals of achieving net zero emissions by 2050.