Three sources familiar with the matter said that German utility companies RWE and Uniper are close to concluding long-term deals to buy liquefied natural gas from… Qatar North Field Expansion Project To help provide an alternative to Russian gas.
According to “Archyde.com”, the talks between Germany and Qatar witnessed disagreements over key terms, such as contract term and pricing, but industry sources, who requested anonymity, said that the two parties are expected to reach a compromise soon.
Germany, Europe’s largest economy, aims to provide an alternative to all Russian energy imports by mid-2024, a breakthrough effort for a country that relies mainly on natural gas for its industries.
While supply deals with Qatar will be positive for Germany, they will not provide an imminent solution to Berlin’s energy crisis because production of the massive North Field expansion project is not expected to begin before 2026.
Archyde.com reported in May that the talks had encountered difficulties because Germany was reluctant to commit to agreements for at least 20 years, and also wanted prices linked to Dutch benchmark gas prices instead of oil.
One of the sources said the talks are now more constructive than they were a few months ago.
Another source said the two German utilities would likely agree to 15-year deals, while a third source said an agreement could be reached within weeks.
Qatar Energy did not immediately respond to a request for comment.
Uniper told Archyde.com on Monday that it was still in talks with Qatar, but had not reached an agreement.
She added, “(Uniper) is currently working hard to diversify the sources of gas supply, and Qatar is also playing an important role in that.”
RWE told Archyde.com it was in “good and constructive” talks with Qatar, without elaborating.