Near Term Still Tight as Germany Agree to Long Term LNG Supply

The German 15 year LNG deal with Qatar suggests the country has decided that security of supply from long term LNG imports is required despite climate and emissions targets. The supply starts in 2026 so will continue into the early 2040s.

• Qatar-German negotiations had originally stalled due to disagreement on contract length
• On Tuesday, German economy minister Robert Habeck, told an industry conference "I also wouldn’t be opposed to 20-year or even longer [LNG import] contracts."
• The long-term LNG deal is just a small proportion of European requirements to fully replace Russian pipeline gas and it doesn’t start until 2026 so won’t help alleviate the near term tight supplies. Global gas markets are likely to remain tight for the next couple of years.
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  • TTF SUM 23 up 5.1% at 135.4€/MWh
  • TTF WIN 23 up 4.2% at 132.9€/MWh
  • TTF SUM 24 up 2.7% at 93€/MWh
  • TTF WIN 24 up 2.4% at 88.7€/MWh