FX.co ★ Germany to import LNG from Qatar

Economy Minister Robert Habeck said Germany will import liquefied natural gas from Qatar.

At the moment, Qatar is increasing gas production in order to help replace supplies to Germany.

Gas prices continue to fall back from an all-time high of nearly $4,000:

Last year, Qatar made the final investment decision on a massive LNG expansion program that will increase its annual production capacity from 77 million tons to 110 million tons. This $28.75 billion project is due to be completed by the end of 2025.

Meanwhile, Germany is urgently looking for alternative gas suppliers to reduce its dependence on Russia. According to the 2019 EIA data, it is the largest consumer of natural gas in Europe and the seventh largest consumer in the world.

Despite the transition of countries to green energy, the German government has recognized that the country's economy will continue to need large amounts of natural gas in the near future.

Habek declined to elaborate on the deal with Qatar, but said it would open doors for the German economy.

As part of the transition to LNG, Germany recently announced plans to build two import terminals for liquefied natural gas. To date, there are none in the country.