Germany to build LNG plant in 'gesture' to U.S. drive to sell more

By Alissa de Carbonnel BRUSSELS (Reuters) - Germany will chose where to build a liquefied natural gas (LNG) terminal by the end of 2018 as a gesture to the United States which wants to ship more gas to Europe, the economy minister said on Tuesday. In a bid to deter U.S. President Donald Trump from imposing hefty new trade tariffs on European Union goods, the EU said in July it would work to increase imports of U.S.

Reuters September 19, 2018 00:06:11 IST
Germany to build LNG plant in 'gesture' to U.S. drive to sell more

Germany to build LNG plant in gesture to US drive to sell more

By Alissa de Carbonnel

BRUSSELS (Reuters) - Germany will chose where to build a liquefied natural gas (LNG) terminal by the end of 2018 as a gesture to the United States which wants to ship more gas to Europe, the economy minister said on Tuesday.

In a bid to deter U.S. President Donald Trump from imposing hefty new trade tariffs on European Union goods, the EU said in July it would work to increase imports of U.S. soybeans and LNG.

Trump wants U.S. LNG to compete with Russian natural gas exports in Europe. He has accused Germany of being a "captive" to Moscow because of its heavy reliance on Russian gas and has called for Berlin to drop support for the $11 billion Nord Stream 2 pipeline plan to pump more gas from Russia to Germany.

"This is a gesture to our American friends," Peter Altmaier said of plans to decide on a site for the LNG terminal.

"We have three competing cities and we will take a decision before the end of the year," he said after meeting Maros Sefcovic, the European Commission vice president and EU energy chief.

But Altmaier said the LNG plan was not related to Germany's support for Nord Stream 2, which he told reporters was "a project that has a long life already and much money has been invested."

At talks in Brussels, Altmaier and Sefcovic discussed the future of gas transit via Ukraine, the traditional route for Russian gas supplies that make up more than a third of EU needs.

Critics of the Nord Stream 2 pipeline say it will deprive Ukraine of lucrative gas transit fees and increase dominance of Russian gas monopoly Gazprom.

Altmaier repeated Germany's request for Moscow to continue to send "substantial" supplies via Ukraine after their contract expires in 2019 but did not put a figure on volumes.

Sefcovic said volumes had to be substantial enough to pay for maintenance of Ukraine's gas pipeline infrastructure.

He also said the United States had to do more to make its gas exports competitive on European markets.

German firms are considering building an LNG terminal as gas demand rises in Europe and the Netherlands, one of Germany's crucial suppliers which is winding down its giant Groningen field and plans to close it in 2030.

German utility Uniper said on Monday it was ready to import LNG and distribute it should a terminal be built at Wilhelmshaven, close to its storage facilities.

(Reporting by Alissa de Carbonnel and Daphne Psaledakis in Brussels; Editing by Edmund Blair)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Greek police clash with protesters in rally against mandatory vaccinations
World

Greek police clash with protesters in rally against mandatory vaccinations

ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.

Two Turkish soldiers killed in attack in northern Syria
World

Two Turkish soldiers killed in attack in northern Syria

ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.

Brazilians take to streets again to demand Bolsonaro's impeachment
World

Brazilians take to streets again to demand Bolsonaro's impeachment

By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied