FRANKFURT—RWE is holding talks with a larger number of suppliers of LNG, not just Qatar and North America, CEO Markus Krebber said, as Germany’s largest power producer continues its efforts to replace Russian gas volumes.
RWE earlier this year said it was in discussions with potential LNG suppliers in the United States and Qatar, as Germany tries to diversify away from Russia, its largest supplier of natural gas.
Sources told Reuters in May that talks with Qatar have proven difficult over disagreement regarding key contract clauses, most notably differences over how long supply agreements would run.
German Economy Minister Robert Habeck said last month Qatar had decided not to make a good offer and that potential importers had procured gas elsewhere for now, Bild am Sonntag reported.
“We are talking to all kinds of suppliers, and there are certainly other countries that have significant LNG export capacity,” RWE’s Krebber told journalists after presenting final first-half results. “The talks are ongoing.”
Apart from Qatar and the United States, Australia is also among the world’s top LNG exporters.
RWE, which is less affected by the reduction of Russian gas supplies than rival Uniper, said it shipped 40 LNG cargoes to Europe in the first six months of 2022, four times the amount of the same period last year.
Krebber said expanding LNG terminals was the key to improving gas supply in Europe, adding RWE would fill terminals once they have been built, including a planned floating unit in Bruensbuettel that aims to start operations in December.
“Infrastructure in Europe is at a breaking point,” he said.
RWE in May unveiled plans to buy around 3 Bcm of LNG per year from U.S.-based Sempra Energy from 2027, which Krebber said would cover RWE’s share in the planned Brunsbuettel LNG terminal.
Recommended Reading
Pitts: Producers Ponder Ramifications of Biden’s LNG Strategy
2024-03-13 - While existing offtake agreements have been spared by the Biden administration's LNG permitting pause, the ramifications fall on supplying the Asian market post-2030, many analysts argue.
Despite LNG Permitting Risks, Cheniere Expansions Continue
2024-02-28 - U.S.-based Cheniere Energy expects the U.S. market, which exported 86 million tonnes per annum (mtpa) of LNG in 2023, will be the first to surpass the 200 mtpa mark—even taking into account a recent pause on approvals related to new U.S. LNG projects.
Everywhere All at Once: Woodside CEO Touts Current Global Portfolio
2024-03-05 - Meg O’Neill, the CEO of Australian energy giant Woodside Energy, is overseeing the “next wave” of growth projects around the globe, including developments in the Gulf of Mexico, offshore Senegal and further LNG expansion.
Hirs: LNG Plan is a Global Fail
2024-03-13 - Only by expanding U.S. LNG output can we provide the certainty that customers require to build new gas power plants, says Ed Hirs.
Venture Global Gets FERC Nod to Process Gas for LNG
2024-04-23 - Venture Global’s massive export terminal will change natural gas flows across the Gulf of Mexico but its Plaquemines LNG export terminal may still be years away from delivering LNG to long-term customers.