RWE, Germany’s largest power producer, is continuing its efforts to replace Russian gas supplies and is in talks with more LNG suppliers than simply Qatar and North America, according to CEO Markus Krebber.
As Germany wants to diversify away from Russia, its top natural gas supplier, RWE earlier this year stated that it was in talks with possible LNG suppliers in the United States and Qatar.
In May, sources told reporters that discussions with Qatar had been challenging because of disagreements over crucial contract provisions, most notably the duration of supply agreements.
According to Bild am Sonntag, German Economy Minister Robert Habeck stated last month that Qatar had decided not to make a reasonable offer and that potential importers had for the time being purchased gas elsewhere.
After presenting the whole first-half results, RWE’s Krebber told journalists, “We are talking to all kinds of suppliers, and there are certainly other nations that have big LNG export potential.” “Discussions are ongoing.”
Australia is one of the main exporters of LNG in the world, along with Qatar and the US.
RWE, whose rival Uniper is more negatively impacted by the decline in Russian gas supply, reported shipping 40 LNG cargoes to Europe in the first half of 2022, or four times as many as during the same period in the previous year.
Expanding LNG terminals, according to Krebber, is the key to enhancing the supply of gas in Europe. He also noted that RWE would fill new LNG terminals once they were constructed, including a planned floating unit in Bruensbuettel that intends to begin operations in December.
“Europe’s infrastructure is at a breaking point,” he declared.
In May, RWE announced intentions to purchase 3 billion cubic meters of LNG annually from Sempra Energy, a U.S. company, starting in 2027. According to Krebber, this will pay RWE’s part of the proposed Brunsbuettel LNG facility.
