Germany is in talks with Shell for supplies of LNG to replace Russian natural gas

Germany is in talks with some of the world’s top liquefied natural gas (LNG) suppliers, including energy giant Shell, to replace Russian fuel with alternative supplies, Bloomberg reported.

The German government, which aims to start importing LNG this winter, is in talks with several companies for long-term supply contracts, people with knowledge of the matter said. It is also looking at signing more deals with US exporter Venture Global LNG, the sources said on condition of anonymity.

Joerg Kukies, the top economic adviser to German Chancellor Olaf Scholz, said he held talks on possible supplies in Sydney during a two-day energy forum. He declined to identify the producers he spoke with.

Shell and Venture Global were not immediately available for comment, the report said.

Germany is set to gain significant LNG import capacity within a year as it moves to reduce its dependence on Russian energy. The European Union is under pressure to find alternative supplies amid fears that Moscow will cut off gas supplies in retaliation for Western sanctions.

More than half of Germany’s natural gas supply came from Russia last year, and deliveries to the four planned terminals would cover about a third of its annual consumption. The biggest hurdle is finding enough available supplies to deliver to the new terminals.

Germany is also in negotiations with Qatar, one of the world’s leading LNG exporters. But talks have bogged down as Germany has opposed Qatar’s demand for longer-term contracts that could complicate its green goals.

Already, Germany has signed some LNG deals with other suppliers. Venture Global LNG signed a contract to supply utility EnBW Energie Baden-Wuerttemberg AG last month. And Sempra Infrastructure agreed to a preliminary deal in May to supply LNG to RWE AG.