EurOil: Germany, Qatar at odds in LNG talks

Germany and Qatar are at odds over contract terms over LNG supply, according to Reuters, in particular regarding the latter’s preference for long-term contracts with destination clauses.

Germany has no regasification capacity and relies on pipeline gas imports, mainly from Russia. But since Moscow began its invasion of Ukraine, the German government has embraced LNG as the short-term means of phasing out Russian gas imports as quickly as 2024. However, it wants to achieve this without compromising on its climate goals, which include slashing its carbon emissions by 88% by 2040, and fulfilling practically all of its electricity needs through renewable power five years before that.

As such, Germany is reluctant to enter into contracts of at least 20 years' duration for LNG supply from Qatar, as the emirate would wish, according to Reuters. It is also against agreeing to destination clauses, which would restrict it from reselling spare Qatari cargoes elsewhere.

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