Qatar and Germany have entered into an energy partnership with a focus on trade in hydrogen and liquefied natural gas (LNG), as Europe’s biggest economy looks for alternative supplies amid Russia’s invasion of Ukraine.
The partnership calls for regular meetings between authorities from both countries and establishing a working group dedicated to strengthening trade relations in LNG and hydrogen, as well as one devoted to renewable energy.
Germany consumes around 100 billion cubic meters of natural gas annually, with 55 percent of that flowing from Russia through the Nord Stream 1 pipeline and the rest coming from the Netherlands and Norway in smaller volumes.
Qatar Emir Sheikh Tamim bin Hamad al-Thani confirmed to German Chancellor Mr. Olaf Scholz that Qatar plans to start supplying LNG to Germany in 2024.
In March 2022, Mr. Robert Habeck, vice-chancellor and the minister for economic affairs and climate action in Germany explored an LNG supply deal with HE Saad Sherida Al Kaabi, Qatari Minister of State for Energy Affairs, one of the world’s top natural gas exporters, to reduce its dependency on Russia.
Germany, which aims to reduce its carbon emissions by 88 percent by 2040 has long-term plans to shift to a green hydrogen economy. According to media reports, Berlin has been hesitant to commit to Qatar’s condition of a 20-year partnership if it wants to secure the massive LNG volumes it needs.
Recently, Qatar reclaimed the crown as the world’s top liquefied natural gas (LNG) exporter from the US, as the end of winter lowered demand for the heating fuel in the northern hemisphere.