German chancellor Olaf Scholz’s trip to Canada will provide no short\u002Dterm relief to Europe\u0027s gas shortage. Read more
The North American nation is one of the world’s biggest gas producers and Scholz will discuss closer energy cooperation with Prime Minister Justin Trudeau. But the government in Berlin does not expect an agreement anytime soon to buy Canadian liquefied natural gas, and instead has shifted its focus to a partnership on green hydrogen, according to officials familiar with the situation.
Talks with gas suppliers in Europe and the Middle East have proven similarly complex, underlining the uphill struggle Scholz and his government face in sealing short-term delivery contracts for gas which could help Europe’s biggest economy avoid rationing this fall and winter. Negotiations with Qatar, one of the world’s biggest LNG exporters, have been especially difficult, one of the German government officials said, describing Qatar’s strategy as playing hard ball over the price and duration of potential agreements with German companies.
To help cut dependence on Russia, Germany is fast-tracking new LNG import terminals, and the first of four floating facilities is due to come online around the turn of the year.
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