Two German energy firms have signed LNG supply contracts with Qatar as part of Germany’s efforts to diversify its gas supply sources and to strengthen cooperation ties with the Gulf country, a high ranking official has said.
Speaking to reporters on the sidelines of the ‘Qatari-German Business Forum’ yesterday, German State Secretary at the Federal Ministry for Economic Affairs and Energy Matthias Machnig did not reveal the value of the deal, but noted that Qatar will supply liquefied natural gas (LNG) to energy firms E.ON and RWE Power in Germany.
“Qatar is seeking to strengthen its position as the world’s largest LNG exporter and develop the area of renewables. Germany wants to diversify its gas supply sources and transport routes, and to share its high level of technical expertise in renewable advancements.
“We welcome the supply agreement that had been setup between companies from Germany and Qatar. Indeed, this is the first time that a German company has concluded a supply contract for LNG from Qatar. I would be pleased if more such contracts would be concluded between our two countries,” Machnig said.
He said one of the companies will start receiving LNG “probably in the beginning of 2018.”
“We are building LNG terminals in Germany and they will import LNG from Qatar and other parts of the world. It’s an ongoing project, which is expected to be commissioned in two years,” he noted.
According to Machnig, about 20% to 30% of Germany’s energy supplies come from gas, and more than 30% of the country’s electricity is produced by renewables.
“We used to have 21 nuclear plants and that has already come down to nine, and these will be phased out by 2022. We are going to reduce coal as well, so the main resources for energy in the future will be gas and renewables,” he pointed out.
Machnig said trade between Germany and Qatar amounted to €2.6bn in 2015. From January to September 2016, volumes stood at €2.2bn. Over the same period, Germany’s exports to Qatar grew by 30% reaching €1.9mn, he said.
During the forum, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohammed al-Thani said in a speech imports from Germany comprise 7.5% of the total imports of Qatar.
Qatar Businessmen Association chairman Sheikh Faisal bin Qassim al-Thani said trade between Qatar and Germany increased by more than 33% in the first half of 2016 to reach QR6bn. “And we expect trade to reach more than QR10bn in the future,” he added.
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