Germany’s Uniper is ready to swap liquefied natural gas (LNG) supplied by Australia’s Woodside for US natural gas so it can boost Europe’s supply more quickly during the coming winter, according to a Reuters report.
The strategy comes as companies and governments across Europe scramble to find alternative energy supply solutions and draw up contingency plans for the coming winter, amid fears that Moscow could cut off gas supplies entirely.
In the event of a supply shortfall, Uniper could make available to customers in Europe US LNG that would be destined for the Asian market and could be located in the Atlantic, speeding up Europe’s supply.
“Uniper is making every effort to bring additional or redirect existing cargoes to Germany. Quantities from Australia could be swapped for US-sourced quantities currently in the Atlantic for customers in China, India and Japan,” said a company spokesperson.
“We can take advantage of this possibility next winter, in case these quantities are needed for Europe,” the company spokesman said, without giving further details on the timing.
Uniper said it was in discussions with customers in Asia to release some supplies, replacing them with gas supplied by Woodside under long-term contracts.
Since mid-June, Russia has drastically reduced flows to Europe through the Nord Stream 1 pipeline and is currently only sending 20% of the agreed quantities.
Uniper, Germany’s biggest importer of Russian natural gas, and Woodside doubled an existing 13-year deal they entered into in 2021 for 1 million tonnes of LNG per year. From 2026 the quantity is expected to increase to 2 million tons per year.
Uniper’s plan will also have environmental benefits by reducing the distances LNG carriers must travel, the company’s spokesman said.
Germany is trying to find alternatives to replace gas supplies from Russia, and has approached Qatar as a possible supplier, but sources told Reuters that talks between the two sides had “stuck”.
Uniper announced on Thursday that it is in talks with several potential LNG suppliers as the Group tries to expand its network of deals.
Source: Capital
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