Gas from Qatar: energy from a questionable partner
It was a visit that was intended to help Germany through its energy crisis in an impending cold winter: Federal Chancellor Olaf Scholz (SPD) in Doha, side by side with the Emir of Qatar, Tamim bin Hamad Al Thani. A few days after the visit in September 2022, the agreement was signed for Qatar to supply large quantities of liquefied natural gas to Germany from 2026. Scholz was "very pleased" and spoke of an "important building block" for Germany's energy supply. Economics Minister Robert Habeck (Greens) called the 15-year term "super".
A year later, the criticism is still being voiced. At the time, climate economist Claudia Kemfert said that the long-term agreement was "highly problematic" in terms of climate protection targets. The FDP's energy policy spokesperson, Michael Kruse, criticized that Germany was making itself "dependent on countries that do not share our values" - a reference to the ongoing criticism of Qatar due to its human rights situation. Climate activist Luisa Neubauer complained that the deal would "systematically obstruct" a rapid energy transition.
Qatar violates human rights
After the start of the war in Ukraine, gas supplies from Russia first decreased and then stopped altogether. Germany is trying to fill these gaps with liquefied natural gas (LNG), among other things, for which several terminals have been and are being built on the North and Baltic Seas. Attention quickly turned to the wealthy emirate of Qatar, one of the largest LNG exporters. The country has the third largest gas reserves in the world after Russia and Iran.
However, the small Gulf state remains a questionable partner. Human rights activists have repeatedly criticized the mistreatment of migrant workers, such as forced labour and exploitation. A year after the World Cup, which brought the country into the global spotlight, progress has mostly come to a standstill, Amnesty International recently criticized. Politically, power lies almost entirely with the Emir, political parties are banned and elections are virtually non-existent.
Guarantee for low gas prices
The war in the Gaza Strip has made the deal even more problematic. This is because Qatar is one of the most important financial backers of the Islamist Hamas, which wants to destroy the state of Israel and which carried out terrible massacres in Israel on October 7 and abducted around 240 people. In October, Chancellor Scholz defended himself against criticism that he had received Qatar's emir in Berlin for talks on the Gaza war: "It would be irresponsible not to use all contacts that can help in this dramatic situation."
The German government remains committed to the deal. Qatar is one of several countries with which the German government is in close contact in its efforts to put energy supplies on a broader footing, according to the Ministry of Economic Affairs. This involves liquefied natural gas, but in the future also the supply of "green", i.e. climate-friendly, hydrogen. Other contacts here are Norway, Canada, the USA and other countries in the Middle East and North Africa.
LNG deliveries are expected to amount to up to two million tons per year, which corresponds to around three percent of Germany's annual demand, according to the industry association Zukunft Gas. The US company Conoco Phillips is to buy the gas and deliver it to Brunsbüttel. Qatar's state-owned company Qatar Energy is promoting LNG as an energy source that is cleaner and an important part of the solution for the energy transition.
The gas industry says that deals like the one with Qatar are also important for low gas prices. "As long as our electricity grid is not completely based on renewable energy, energy and therefore electricity prices will remain closely linked to the price of gas," says Timm Kehler, CEO of the industry association Zukunft Gas. Low gas prices are therefore also an important building block for low electricity prices. "In addition to the expansion of renewable energies, long-term contracts in the LNG sector are therefore necessary to secure favorable gas prices and thus ensure affordable electricity prices."
- Despite the concern over Qatar's human rights record, the German government continues to seek partnerships for LNG supply, with Qatar Energy being one of the key players, due to their cleaner gas and potential role in the energy transition.
- Amidst the controversy surrounding Qatar's support for Hamas, Germany's deal with Qatar for LNG supply remains, as it is seen as a way to ensure affordable gas and electricity prices, given the current reliance on gas in the electricity grid.
Source: www.dpa.com
