LONDON:

Germany and Qatar have hit difficulties in talks over long-term liquefied natural gas (LNG) supply deals amid differences over key conditions, including the duration of any contract, three people familiar with the discussions told Reuters. Germany, which aims to cut its carbon emissions by 88% by 2040, is reluctant to commit to Qatar’s conditions to sign deals of at least 20 years to secure the massive LNG volumes it needs to reduce its dependence on Russian gas, the people said. Qatar, the world’s largest LNG supplier, is also specifying terms such as a destination clause that would prevent Berlin from rerouting the gas to other areas in Europe, a condition which the European Union opposes. The tough talks between Qatar Energy and German utilities highlight the challenges the EU faces in its ambition to diversify away from Russian gas as the German government struggles to balance any deal with its carbon reduction targets.

Published in The Express Tribune, May 10th, 2022.

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