Germany has signed another deal for American LNG supplies with Venture Global. Derek Brower, David Sheppard, and Shotaro Tani report for the Financial Times:
Germany has signed another long-term deal to import more US liquefied natural gas, as Berlin moves to replace Russian energy in its economy amid Moscow’s war in Ukraine.
SEFE, or Securing Energy For Europe — the company born out of Berlin’s effective nationalisation of the German operations of Russia’s state-owned Gazprom — will purchase 2.25mn tonnes a year of the super-chilled gas from Venture Global LNG, an American developer of export terminals along the Gulf of Mexico.
The 20-year duration of the supply contract is an indication that Germany — which began importing LNG just seven months ago — expects gas consumption will endure in its economy despite a goal of cutting 95 per cent of net carbon emissions by 2045. SEFE is entirely owned by the German state.
Egbert Laege, SEFE’s chief executive, said the deal marked “another important step on our mission to secure energy for European customers” and would “contribute to the further diversification and sustainability” of the continent’s supplies.
Venture Global chief executive Mike Sabel hailed the “strategic partnership” with Germany, saying his company was “honoured to support a key US ally”.
The companies did not disclose the price at which the gas — equivalent to about 5 per cent of Germany’s demand — would be sold.
The deal is Germany’s second 20-year agreement with Venture Global, following one for 2mn t/y signed by utility EnBW, which is largely owned by the south-west state of Baden-Württemberg. The agreements will make Venture Global Germany’s largest LNG supplier.
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