Skip to main content

Berlin signed with Qatar long term gas supply.

Qatar is to provide Germany with liquefied natural gas under a long-term supply deal that marks a big step forward in efforts by Europe’s biggest economy to wean itself off Russian gas. Under the two sales and purchase agreements signed yesterday by state-owned QatarEnergy and US group ConocoPhillips, about 2mn tonnes of LNG will be sent to Germany annually for at least 15 years, with deliveries expected to start from 2026. Robert Habeck, Germany’s economy minister, welcomed the agreements. « have to realise that Germany will be purchasing less if we want to adhere to our climate goals.» In this event, the companies «will have to deliver the volumes they have bought to other countries».

The agreements would contribute to Germany’s energy security «with a supply period that extends for at least 15 years», said Saad Sherida Al-Kaabi, Qatar’s energy minister and chief executive of QatarEnergy. Kaabi added that Qatar separated «politics from business», referring to an apparent protest by Germany’s World Cup squad against Fifa’s decision to ban players from wearing «One Love» armbands in support of the LGBT+ community against Japan last week. Zongqiang Luo, a senior analyst at Rystad Energy, said the latest deals were «a sign that Europe is beginning to tire of Russia’s intermittent supply and is increasingly seeking long-term alternatives». While 2mn tonnes of LNG accounts for about 3 per cent of Germany’s annual gas demand, it will help fill the gap in a country that has been one of the worst hit as Russian president Vladimir Putin weaponised energy supplies.

Russian gas accounted for more than half of Germany’s supplies before the invasion, and Berlin is striving to build new import infrastructure for LNG.

www.sba.tax

Labels:

Comments

  1. Anonymous30 November 2022 at 13:56

    Germany is not in a position to be choosers right now. Qatar is not the best to do business with but right now it's a better alternative to Russia. Germany needs to think long term and do business with countries that are dependable and also countries that aren't known for doing shady things as Qatar is known for unfortunately.

    ReplyDelete
    Replies
    1. Thomas30 November 2022 at 17:58

      Agreed, but like you said, they don’t have many options now. And they need gas now and can’t rely on Russia anymore. It’s not good that money is sent to Qatar which isn’t the friendliest nation around but it is what it is. I hope Germany can find better alternatives quickly and not change their reliance on Russia to one on Qatar. That wouldn’t be wise.

      Delete
    2. Robert30 November 2022 at 18:45

      @Thomas - I think they need to diversify and not rely on much from a single source. Maybe have 4-5 different sources for their gas supply?

      Delete
    3. Connor30 November 2022 at 18:58

      I know Qatar isn’t on anyone’s Christmas list but I would pick them over Russia or China any day of the week. Whether or not Germany should opt for other countries for gas supply is another matter. Why would you want to rely on a single place for something so essential? Just look at what happened with Russia.

      Delete
  2. Philip Martins30 November 2022 at 19:23

    I still can’t believe a country like Germany would rely on Putin and Russia for more than half of their gas needs?! It’s beyond incredible to me that this would or could happen and yet here we are. You can never rely on such a country so much as you can’t rely on Qatar as well.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

H&M struggles with profitability.

  H&M blamed high clothes prices ,  its exit from Rus­sia and a cost-cut­ting pro­gramme for an unex­pec­tedly large col­lapse in its earn­ings as the world’s second-largest fash­ion retailer’s struggles with prof­it­ab­il­ity con­tinue .  Oper­at­ing profit plunged 87 per cent to SKr820mn in the fourth quarter to the end of Novem­ber from a year earlier .  Shares in H&M fell more than 4 per cent to SKr125 . 80 yes­ter­day ,  hav­ing lost nearly half of their value since their recent peak in April 2021 .  The Swedish retailer ,  which lags behind Indi­tex ,  the Span­ish owner of Zara ,  in sales and prof­it­ab­il­ity ,  launched a SKr2bn cost-cut­ting pro­gramme last year that included 1 , 500 job losses . H&M’s sales in the fourth quarter were up 10 per cent to SKr64 . 4bn but flat in local cur­rency terms .  It said sales from Decem­ber 1 to Janu­ary 25 had increased 5 per cent in local cur­ren­cies .  «Sales in ...
2 comments
Read more

Commercial properties continue to fall

  UK commercial property values and rents are projected to «tumble off a cliff edge» in the first quarter of 2023, as estate agents warn offices will fare worst as prices fall. A survey of more than 400 commercial agents forecast a 2.9 per cent decrease in prices per square foot across the industry in the first three months of the year, with offices falling 3.1 per cent. «Where we saw the market stop still, we will see the market finding its level, people working out where things are, where value is,» he said. Listed vehicles have already seen this valuation drop in their share prices, with real estates investment trusts such as Land Securities and British Land falling by a fifth or more this year. According to the RIB estate report, offices are expected to suffer the most significant sales price falls, with nearly a third of respondents expecting them to come down by more than 5 per cent. In addition, the survey projected a 1.3 per cent fall in rents per square foot over the perio...
Post a Comment
Read more

BoE is considering to increase deposit guarantee.

  According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...
Post a Comment
Read more