Amazing “principleness”: Germany decided to buy gas from Qatar, which it criticizes

Qatari LNG will not begin to flow to the Germans soon

Germany has reached an agreement with Qatar on the supply of liquefied natural gas for 15 years. In an effort to refuse Russian gas supplies, Berlin intends to purchase 2 million tons of liquefied gas from the Persian Gulf country, which is being slandered in the German media and political circles for “intolerant behavior.”

German firms have signed a 15-year deal to buy 2 million tons of LPG from Qatar, sending mixed signals about Germany’s priority on human rights in the Gulf and its commitment to carbon-neutral energy supplies.

The deal was announced by the state-owned company Qatar Energy, deliveries will begin in 2026. The gas will be sold by Qatar to the American company ConocoPhillips, which will then supply it to the Brunsbüttel LNG terminal, Qatar’s energy minister said in Doha.

As recalled by The Guardian, Germany was one of the countries most critical of the World Cup in Qatar in relation to sexual minorities, as well as the working conditions of guest workers who built football stadiums in the Middle Eastern monarchy. But Economy Minister Robert Habeck, a member of the Green Party, also said that, faced with the need to refuse Russian gas supplies, Germany should receive energy from various sources. Are there principles here?

Robert Habek visited Doha in March, but disputes over the length of the contract delayed the agreement: Qatar would have preferred a 25-year contract, while Germany was looking for something much shorter. On Tuesday, the German economy minister said: “Fifteen years have been great. They seem like good conditions to me.”

Germany is building four temporary emergency floating LNG terminals for the shipment of liquefied gas. The inevitable construction of permanent terminals has been hampered by planning delays, but is now moving forward, expanding Germany’s ability to diversify its energy sources away from Russian pipelines.

Qatari gas will not arrive soon enough to help Germany avoid energy shortages this winter and possibly even the winter after. Germany is now confident it can avoid blackouts this winter, but less certain it will have the reserves to avoid blackouts or rationing in 2023-24.

The Emirati Sovereign Fund is helping finance a major corporate takeover through RWE convertible bonds. As a result, Qatar will become the largest shareholder of RWE, the Essen-based energy giant, with 9% of its shares.

The relatively small size of the contract highlights Germany’s commitment to meeting its zero-carbon targets, including achieving zero carbon emissions in 2045, four years after the contract with Qatar expires.

Two million tons of LPG corresponds to approximately 30 terawatt hours (TWh) or 3% of Germany’s annual energy consumption. Before the conflict in Ukraine, about 500 TWh of gas were supplied annually from Russia alone.

Qatar is one of the world’s largest LNG exporters. The emirate has the third largest gas reserves in the world after Russia and Iran. Qatar shares with Iran the world’s largest gas field, located off the coast of the country.

The vast majority of Qatari exports go to Asia, so far mainly to Japan, South Korea and India. Qatar wants to increase LNG production by 60% by 2027, producing 126 million tons per year.