Germany to sign LNG contracts in UAE

German Chancellor Olaf Scholz was expected to sign contracts for liquefied natural gas (LNG) during his visit to the United Arab Emirates (UAE), Economic Affairs and Climate Action Minister Robert Habeck said on Monday.

"The gas offering is slowly broadening," he said.

Habeck was touring Lubmin, where the construction of one of Germany's new liquefied natural gas (LNG) terminals was set to start.

The construction is part of a plan to stop the country's dependency on Russian fossil fuels in the wake of the war in Ukraine.

"We must show that, in times like these, we can plan, authorize and build faster than is usually the case in Germany," Habeck said of the construction drive.

Scholz will visit Saudi Arabia, Qatar and the United Arab Emirates (UAE) at the weekend, and Germany's energy needs are high on the agenda. 

Construction of LNG terminal in Germany

With the major Nord Stream 1 pipeline to Russia shut, Germany plans to build new LNG terminals to ship in gas.

Last week, Scholz said the LNG terminals in Wilhelmshaven, Stade Brunsbüttel and Lubmin would be ready for imports by the end of next year.

In Lubmin, the industrial port would initially be upgraded to allow smaller shuttle ships to bring LNG from large tankers anchored off the coast and feed it into the existing gas network.

The firm said the first gas could be delivered via the privately financed terminal as early as December.

"If everything goes well, savings in Germany are high and we have a bit of luck with the weather, we ... have a chance at getting through the winter comfortably," Habeck said.

A floating gas terminal funded by the German government should be ready for operation by the end of 2023.

Lubmin is also where the Nord Stream 1 gas pipelines arrive from Russia, but the line was shut three weeks ago.

lo/aw (dpa, Reuters)

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