(MENAFN- The Peninsula) By Mohammad Shoeb I The Peninsula
Qatar and Germany are expected to discuss ways of expanding bilateral economic ties in new areas, which will include in the field of energy, according to a senior diplomat at the German embassy in Doha.
A high level German trade delegation, led by the Prime Minister of Lower Saxony of Federal State, Stephan Weil, will be visiting Qatar by the end of this month. Discussions during the visit of the Prime Minister Weil and his accompanying delegation with Qatari authorities are also expected to focus on the field of energy cooperation between the two countries.
If talks are successful, German companies will be buying LNG (liquefied natural gas) direct from Qatar, and the state-owned energy giant Qatar Petroleum may also invest in the upcoming LNG terminal to be built in Germany.
Currently Germany, the largest consumer and importer of gas in Europe, does not receive LNG direct from Qatar. Most of its gas comes through pipeline from Russia and a very limited amount of Qatari gas is indirectly sourced through Belgium and the Netherlands.
Germany, which heavily depended on gas imports, especially on Russia, is working to diversify its sources, and the upcoming LNG terminal, once ready, will be able to receive Qatari LNG direct.
'In Germany, the energy business is fully controlled by private players, and government has very limited role and most investment decisions are taken by private companies. But currently they are negotiating with Qatar and I hope Qatari gas directly reaching to the German coast in the coming years, Daniel Schemske (pictured), Deputy Head of Mission at the German Embassy in Doha told The Peninsula on the sidelines of an event.
Schemske added: 'The initial investment would be taken by German companies which would build and run the proposed LNG terminal, but QP is also expected to join it as it is the leading producer of LNG in the world. The proposed LNG terminal is expected to be developed along the northern coast of Federal State of Lower Saxony and the state's government is currently led by Prime Minister Weil.
According to latest reports early last month, German LNG Terminal, the joint venture behind the LNG terminal project in Brunsbuettel, Northern Germany, has completed the EPC contractor pre-qualification process that started at the end of June this year.
The Europe's largest economy, as part of its strategic energy policy, is phasing out a lot of its coal fired power plants, and several of its nuclear power stations are also going to retire soon, which are expected to be filled by gas-fired power plants and renewable sources of energy.
Reports also suggest that German gas demand could rise by up to 8 percent in the period to 2022 to replace orchestrated closures of coal-fired power plants recently recommended by a government-appointed commission.
'Phasing out of nuclear power stations is one of the major determinants of Germany's energy strategy. The aim is to have more sustainable energy production in the country. Some of the coal-fired power plants are also supposed to be taken off the grid by 2030, which will further boost the demand for gas as a transition fuel, Schemske noted.
The bilateral trade volume between Qatar and Germany stood at €2.1bn in 2018, which is largely in favour of Berlin.
MENAFN1911201900630000ID1099299268
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.