The energy crisis caused price shocks, almost unprecedented and unimaginable just two years ago. The growth of energy prices was caused by various factors, some of which were real. However, the energy map of the European Union is changing. Many political and economic activities are taking place in that direction.
However, Germany is opening a new page in European energy history. Namely, the main economic driving force of the Union, which was also the most dependent on Russian gas, set a goal for the complete replacement of this energy coming from Russia in the next few years. Germany imports over 40% of its total natural gas needs from Russia.
In terms of finding an energy source that will reduce Russia’s dependence, Germany is turning completely to the West. Namely, the Russian gas will be replaced by Arab liquid gas, and the transport will be carried out by the large American energy giant ConocoPhillips. This company will exploit liquid gas from Qatar and distribute it to Germany. According to the preliminary agreement, 2 million tons of liquefied gas will arrive in Germany annually.
During his visit to Qatar this fall, German Chancellor Olaf Scholz announced this cooperation, which is slowly being translated into concrete steps.
In order to create the appropriate infrastructure to receive the liquid LNG, Germany is investing in new terminals. The liquefied gas terminal was built in a record six months and should start operating by the end of the year. This floating terminal is located in the port of Wilhelmshaven. This infrastructure is part of the country’s grand plan to replace 50-60% of Russian gas over the next year.
The Qatar gas supply agreement should provide the country with liquid gas through US-based ConocoPhillips in the next 15 years, deliveries should begin in 2026. To meet the needs of new markets, Qatar will increase LNG production by 60% by 2027, which will increase annual production to 126 million tons of gas.
Such announcements from Qatar are expected because, in addition to the LNG supply agreement for Germany, an agreement with China has also been signed, and a larger amount of gas will be needed to meet the needs of these agreements.
At the moment, according to the amount of gas production, Qatar ranks sixth in the world. But according to how the world market is repositioning, it seems that the countries of the Middle East will become much more important players in the gas segment, not only in oil.
This situation will definitely affect the world geopolitical map. But at the same time, this energy will arrive in Germany at a higher price than before. In addition to that, huge funds will be invested in the construction of appropriate infrastructure, which will increase costs.
However, the world is changing, and the process that has begun will contribute to building new relationships that bring challenges but also new opportunities.