Qatar to Supply Syria with Natural Gas, Easing Power Crisis amid Regional Shifts

Qatar is set to supply natural gas to Syria, with the approval of the U.S. government, marking a significant shift in the Middle East’s geopolitics. Despite its previous strong opposition to Bashar al-Assad’s regime, Qatar is now playing a pivotal role in addressing Syria’s acute energy crisis. The gas will be transported from Qatar to Syria via Jordan, where it will be directed to the Deir Ali power plant in southern Syria. This deal could potentially boost Syria’s power supply by up to 400 megawatts, alleviating the severe energy shortages the country has been facing due to the disruption of oil supplies.

This agreement comes at a time when Syria’s energy situation has become dire. Iraq suspended crude oil deliveries to Syria in December, cutting off approximately 120,000 barrels per day. Simultaneously, crude supplies from Iran, which had also supported Syria’s energy needs, have come to an end. As a result, fuel prices in Syria have skyrocketed, exacerbating the hardships for civilians during the transitional period following the Assad regime’s decline.

The move to supply gas is also part of a broader trend of changing dynamics in Syria. Last month, the European Union discussed lifting sanctions on Syria’s energy sector, including removing the export ban on oil and gas technology and permitting infrastructure projects. This shift in policy is part of an ongoing reevaluation of Syria’s situation, as EU countries also explore the possibility of delisting Al-Qaeda-linked factions such as Hay'at Tahrir al-Sham (HTS) from their list of terrorist organizations, a decision requiring approval at the UN Security Council level.

In addition to its involvement in Syria’s energy crisis, Qatar has been adjusting its oil pricing strategy. Qatar's state-run oil company, QP, has followed Saudi Arabia’s lead in cutting prices for its al-Shaheen crude, marking the first reduction in three months. The price for May deliveries of al-Shaheen crude has been set at $1.29 per barrel above the Dubai benchmark, a significant drop from the previous month’s $3.50 per barrel premium. These cuts come in response to a well-supplied global oil market, partly driven by rising OPEC+ production and increasing U.S. shale output.

This price adjustment reflects the broader trends within the oil market, where OPEC+ countries, including Saudi Arabia and Russia, are recalibrating their strategies. OPEC+ is planning to unwind some of its production cuts next month, with an increase of 138,000 barrels per day. However, Russia’s Deputy Prime Minister, Alexander Novak, has warned that these adjustments could be reversed if market imbalances occur, signaling the group’s cautious approach to maintaining market stability.