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(Bloomberg) — German Economy Minister Katherina Reiche is pushing gas companies to secure more LNG contracts to ensure supply amid a Middle East war–driven energy crunch.
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RWE AG, together with the nationalized companies Uniper SE and SEFE, already purchases significant volumes of US LNG under long-term agreements, “and we encourage them to do so,” Reiche told Bloomberg on the sidelines of the CERAWeek energy conference hosted by S&P Global in Houston.
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The US is a major energy supplier, she said, “but we are also looking for a diversified portfolio.”
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Germany phased out pipeline gas from Russia following its 2022 invasion of Ukraine and accelerated the expansion of LNG terminals. The ultra-chilled liquefied gas now accounts for about 13% of total imports, with roughly 94% sourced from the US.
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Chancellor Friedrich Merz visited the Gulf last month to seek new LNG deals, but the Iran conflict has disrupted much of the region’s production. Reiche said Germany is also pursuing agreements with Angola, Mexico, Canada and other suppliers worldwide.
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“The most important lesson from Ukraine and also now from Iran: The Western hemisphere shouldn’t rely on choke points,” she said.
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Even if it’s possible to rebuild damaged facilities, “there will be a premium on risk,” Reiche added. “So we will see higher energy prices” for a period of time.
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Earlier this year, the government expected gross domestic product to grow close to 1% in 2026, but the longer the war persists, the more energy prices and inflation are likely to rise — and “that will affect the economy,” she said.
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—With assistance from Eva Brendel.
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English (US)