Germany should not rely solely on US gas, economy minister says

German gas companies should not rely solely on supplies of liquefied natural gas (LNG) from the United States in the future. Instead, they should seek to diversify their sources to make it easier to secure supplies during energy crises. German Economy Minister Katherina Reiche, who is attending the annual CERAWeek conference on oil and energy resources in Houston, told Bloomberg.

The United States is a major energy supplier, "but we are also seeking to diversify our portfolio," the minister said in the context of the energy crisis triggered by the war in the Middle East. Germany is seeking, among other things, to strike deals with Angola, Mexico, Canada and other suppliers around the world, she said.

Energy company RWE, along with state-owned companies Uniper SE and SEFE, already buys significant volumes of US LNG under long-term contracts, which the government supports, according to Reiche.

Germany gradually ended imports of Russian gas after Russia's 2022 invasion of Ukraine and accelerated the construction of LNG terminals. Supercooled liquefied gas currently accounts for about 13 percent of total imports, with roughly 94 percent of that coming from the US, Bloomberg reports.

"The most important lesson from Ukraine and now Iran is this: the Western world should not rely on chokepoints," the German minister said.

Under normal circumstances, about a fifth of global natural gas and oil supplies pass through the Strait of Hormuz. Traffic through the waterway has nearly ground to a halt following threats from Tehran after the Israeli-US attack on Iran began on February 28.

Oil prices have risen sharply as a result of the blockade of the Strait of Hormuz and Iranian attacks on energy infrastructure, while gas prices have also fluctuated significantly.

The annual CERAWeek conference on oil and energy resources runs until March 27.