Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Both Russian and US gas are in Germany's future energy mix

BERLIN, Nov 2 (Reuters) - Germany will likely be a buyer of liquid natural gas from the United States in the medium term, the government official tasked with trans-Atlantic relations said on Friday, but not as a result of any threats from Washington.

Germany LNG Smaller

Peter Beyer, Berlin's coordinator for relations with North America said Germany needs to diversify its energy mix as North Sea gas runs out and insisted that a Russian pipeline vehemently opposed by Washington was needed.

Berlin's ties with the United States have been under immense strain since President Donald Trump took office, and the planned Nord Stream 2 pipeline, which would bring Russian gas straight to Germany under the Baltic Sea, has been a particular concern.

"Germany's energy sources in the North Sea for example are running out and we have a responsibility to spread risks," he told Reuters on Friday, conceding that the pipeline would likely bring a sharpening of Washington's sanctions regime.

Washington has threatened to impose sanctions on companies that participate in the building of projects like Nord Stream 2, which U.S. officials say helps the Kremlin finance destabilising activities around the world, as well as cutting Ukraine out of lucrative transit fees as it battles Moscow-backed separatists.

"I personally expect that we will see a sharpening of the (sanctions) guidelines at the beginning of the year," he said. "Whether that means we actually get tougher sanctions I don't yet know."

The U.S., which has become a major exporter of gas thanks to shale drilling, is keen to open new markets by ensuring energy net importers like industrial powerhouse Germany construct terminals capable of receiving liquefied gas.

Beyer said that U.S. LNG was still too expensive to be competitive with other energy sources, but that this would likely change as the market expanded, though it was not yet clear whether Berlin would provide financial support for the building of such a port, as many urge.

He added that Washington had escalated its willingness to threaten sanctions in pursuit of its foreign policy goals in recent months, including its attempts to hinder European companies trading with Iran. (Reporting by Thomas Escritt; Editing by Elaine Hardcastle)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The $26-B small-scale LNG market is gaining exciting traction this year.
Regional Focus: Singapore moves closer to becoming a global LNG trading hub
-Eugene Gerden
Amid strong demand for LNG in the Asia-Pacific region and the need to secure regular gas supplies on a large scale, Singapore may become a major regional hub for LNG trade.
Show Preview
-Adrienne Blume
For the third time in its 47-yr history, Gastech is returning to Houston, Texas.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.