G7 to discuss Ukraine, energy prices following German push for global gas talks
POLITICOOct 10, 2022
On Tuesday, state-owned QatarEnergy and the US company ConocoPhillips signed two sales and purchase agreements to supply liquefied natural gas (LNG) to Germany for 15 years starting in 2026. It's the first deal to Europe from Qatar's North Field expansion project.
According to Qatar’s energy minister, the Persian Gulf state will annually sell 2M metric tons of LNG to ConocoPhillips, which will then deliver it to Germany's northern LNG terminal in Brunsbüttel. Germany is currently building four temporary floating LNG emergency terminals while plans for permanent terminals progress.
With the war in Ukraine escalating, Germany is scrambling to find alternatives to Russian gas. For example, Berlin is working on a solidarity agreement with Italy that could include gas sharing. In addition, it has signed agreements on gas deliveries with Austria and Denmark. Forging ties with big exporters is necessary to diversify its supplies as quickly as possible. While it may not prevent a short-term energy crunch, the 15-year deal with Qatar is crucial to Germany’s long-term energy security.
Germany — ironically a blatant critic of Qatar's hosting of the 2022 soccer World Cup due to its violation of human rights and its treatment of the LGBTQ community — has silenced its voice by prioritizing business over values. Moreover, the short-term agreement underlines the European economic powerhouse's commitment to reaching carbon neutrality by 2045. The urge to shake hands with Qatar is beyond comprehension.
There's a 50% chance that a major nuclear power plant in Germany will be operational on June 1, 2030, according to the Metaculus prediction community.