Germany Pushes to Secure LNG Contracts with Gulf Amid Russian Cuts

Germany is pushing to secure liquefied natural gas contracts with Gulf producers to conserve energy, with Russian flows running at severely reduced levels as winter approaches.

‘Pioneering Spirit’ a ship involved in pipe-laying of Nord Stream pipeline. Credit: Pieter Schelte, CC BY-SA 2.0, Wikimedia Commons

Germany is pushing to secure liquefied natural gas contracts with Gulf producers to conserve energy, with Russian flows running at severely reduced levels as winter approaches.

Berlin said it aimed to sign LNG contracts in the United Arab Emirates to supply terminals it is building, now that the vital Nord Stream 1 gas pipeline from Russia is shut, while Spain, France others outlined contingency planning to try to avoid power cuts.

“If everything goes well, savings in Germany are high and we have a bit of luck with the weather, we … have a chance at getting through the winter comfortably,” Economy Minister Robert Habeck said after a tour of a future LNG terminal in northern Germany.

The sharp drop supplies from Russia, which previously supplied about 40% of the European Union’s gas needs, has left governments scrambling to find alternative energy resources and has prompted fears of possible power cuts and a recession.

Russia has blamed Western sanctions imposed on Moscow for its invasion of Ukraine for hampering pipeline deliveries. European politicians say Moscow is using energy as weapon.

Germany’s RWE said it was “in good and constructive talks” with Qatar about LNG deliveries, before a planned visit by Chancellor Olaf Scholz to the Gulf. Ailing importer Uniper said it had not reached a deal yet.

Germany will also be able to count on gas flowing from France from around October 10, the head of France’s CRE energy regulator said, following an announcement by President Emmanuel Macron that the two would help each other with energy supplies.

Although deliveries via the Nord Stream 1 have halted, Russian gas flows to Europe via Ukraine, although much reduced, have continued.

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