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Skybird · 05-10-22, 06:27 AM

According to Reuters, negotiations on liquefied gas supplies from Qatar for Germany are going slowly. The main reason is that Qatar is insisting on long-term supply contracts for at least 20 years, people familiar with the talks told the news agency.

The German negotiating partners, however, have little interest in long supply contracts, as Germany wants to be climate neutral as early as 2045. According to the latest legislation passed by the cabinet, the energy sector is to be virtually CO2-free as early as 2035.

This would therefore mean that gas would no longer be allowed to be used for heating or power generation. For the next few years, however, Germany will have to rely on liquid gas to replace Russian pipeline gas. A source told Reuters, "The length of the liquefied natural gas contracts could jeopardize Germany's decarbonization goals."

The two sides are also apparently at odds over a clause on the destination of gas deliveries. Qatar wants to dictate that the gas will not be forwarded to other European countries. The European Union does not agree.

A third point of contention is the question of what the gas price should be linked to in the future. Qatar wants a link to the price of oil. Germany argues for a link to a European gas index. Felix Booth, a liquefied natural gas expert at Vortexa, says: "Qatar has the levers in its hands. In the end, Germany will have to agree to terms to secure supply." Liquefied gas is much more expensive than cheap Russian gas anyway.

The German Economics Ministry did not comment when asked, nor did the government of Qatar. Gas importers Uniper and RWE also declined to comment on the talks.

German Economics Minister Robert Habeck (Greens) had visited Qatar in March and subsequently reported an energy partnership. According to insiders, the Emir of Qatar, Tamim bin Hamad Al Thani, wants to come to Germany before the end of May to sign an agreement. This does not mean, however, that supply contracts will be agreed, said people familiar with the plans for the visit.

05-10-22, 06:27 AM	#1551
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 40,671 Downloads: 9 Uploads: 0	According to Reuters, negotiations on liquefied gas supplies from Qatar for Germany are going slowly. The main reason is that Qatar is insisting on long-term supply contracts for at least 20 years, people familiar with the talks told the news agency. The German negotiating partners, however, have little interest in long supply contracts, as Germany wants to be climate neutral as early as 2045. According to the latest legislation passed by the cabinet, the energy sector is to be virtually CO2-free as early as 2035. This would therefore mean that gas would no longer be allowed to be used for heating or power generation. For the next few years, however, Germany will have to rely on liquid gas to replace Russian pipeline gas. A source told Reuters, "The length of the liquefied natural gas contracts could jeopardize Germany's decarbonization goals." The two sides are also apparently at odds over a clause on the destination of gas deliveries. Qatar wants to dictate that the gas will not be forwarded to other European countries. The European Union does not agree. A third point of contention is the question of what the gas price should be linked to in the future. Qatar wants a link to the price of oil. Germany argues for a link to a European gas index. Felix Booth, a liquefied natural gas expert at Vortexa, says: "Qatar has the levers in its hands. In the end, Germany will have to agree to terms to secure supply." Liquefied gas is much more expensive than cheap Russian gas anyway. The German Economics Ministry did not comment when asked, nor did the government of Qatar. Gas importers Uniper and RWE also declined to comment on the talks. German Economics Minister Robert Habeck (Greens) had visited Qatar in March and subsequently reported an energy partnership. According to insiders, the Emir of Qatar, Tamim bin Hamad Al Thani, wants to come to Germany before the end of May to sign an agreement. This does not mean, however, that supply contracts will be agreed, said people familiar with the plans for the visit. __________________ If you feel nuts, consult an expert.