European Commission probes Qatari LNG supply agreements

The European Commission has opened an antitrust investigation into supply arrangements between Qatar Petroleum and EEA importers of liquefied natural gas (LNG).

The Commission is investigating whether Qatar Petroleum’s long-term supply agreements, for the supply of LNG in the EEA contain direct or indirect restrictions on the ability of the buyers to sell the LNG in the EEA. Some of these arrangements are of 20 or 25 years’ duration.

The Commission suspects that such practices, if proven, violate Article 101 and 102 of the TFEU.

The Commission has pointed to its previous decisional practice citing precedents such as its investigations into GDF/ENI and GDF/ENEL where territorial restrictions were treated as restrictions ‘by-object’.  Those cases were decided over 15 years ago and although the Commission has identified a potential theory of harm in the current investigation it is less clear whether it will focus on Article 101 or 102 in this case.  Qatar Petroleum is the largest gas exporter in the world and apparently accounts for close to 40% of the EU’s gas imports and more in some member states.

Case AT.40416 - Qatar Petroleum. Commission press release IP/18/4239