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Germany is getting ready for winter and is increasing LNG purchases

Germany has signed a contract for the supply of natural gas from the United Arab Emirates. Berlin is trying to cut off from importing Russian energy before winter comes.

Under the agreement, the German energy giant RWE will receive liquefied liquids natural gas from Abu Dhabi National Oil Co. This will be delivered to the new gas terminal near Hamburg. As RWE informed, the delivery of 137 thousand. cubic meters LNG is expected to arrive by the end of December.

Germany is trying to source energy from countries other than Russia as Moscow is restricting gas supplies in response to Western sanctions. The limitation in supplies caused an increase in natural gas prices in Europe by over 300% this year. and forced Germany to turn to alternative and cheaper energy sources such as coal.

– This is an important step in building the LNG supply infrastructure in Germany and creating a more diversified gas supply – stated the representatives of RWE.

Abu Dhabi National Oil Co. committed to delivering LNG loads to Germany from 2023 Both sea and land regasification terminals will be used.

European countries are increasingly turning to technologically advanced floating terminals to help in the fight against energy crisis, as land-based facilities are depleted. Germany has chartered five floating storage and regasification units, and the energy giant Uniper has invested around $ 65 million in projects.

– We need to make sure that the production of LNG in the world is so advanced that the existing high demand can be met without resorting to production in Russia – said German Chancellor Olaf Scholz during his visit to the United Arab Emirates.

The UAE is not the only alternative supplier Germany has turned to. RWE and Uniper are close to concluding long-term contracts for the purchase of LNG from Qatarbut deliveries will not start before 2026.

Dutch TTF gas futures, the European price benchmark, fell 6.2% on Monday. up to € 173.99 per megawatt hour.

Author: Zahra Tayeb, transl .: Mateusz Albin

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