RWE Adds African Producers to Talks on Supplying German Terminal
African producers are between a rock and a hard place. Their former North American market has turned exporter, Asia is very far away which means there are many others with locational advantages, and Europe has pipeline gas as a counterweight which means that prices there will never be quite as high as in Asia. So, Europe it is if it’s for the lack of better options. When markets spill LNG through their ears in Asia, Africans will be the first to be cut. Europe should have a lot of weight in Africa. Still not an easy discussion for sure.
Africa is joining Qatar and the U.S. on the list of potential suppliers of liquefied natural gas to Germany’s first import terminal for the fuel. Talks are underway with African LNG producers to supply the planned German facility, as well as with Qatar, the world’s biggest producer, said Andree Stracke, chief commercial officer at RWE AG’s supply and trading unit. The German utility has agreed to take capacity in the proposed terminal near Hamburg.
