Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Germany offered to build LNG terminals to avert U.S. pipeline sanctions

Berlin offered to spend 1 billion euros ($1.2 billion) to build two LNG terminals in a bid to dissuade the United States from imposing sanctions over the Nord Stream 2 pipeline, due to bring gas directly from Russia to Germany, according to Die Zeit.

The weekly paper said Finance Minister Olaf Scholz made the proposal in an Aug. 7 letter before Washington imposed sanctions on companies involved in building the Baltic Sea pipeline, effectively freezing its construction.

A spokesman for the German finance ministry said he could not comment on individual reports.

The United States and many European countries oppose the pipeline, which they say will increase Europe's reliance on Russian gas and deprive transit states such as Poland and Ukraine of leverage over the giant country to their east.

The United States, rich in domestic energy as a result of soaring shale gas production, is also keen to expand its energy exports, including to Germany, whose industrial might is heavily dependent on energy it imports mainly from Russia.

German ministers including Scholz have said this was the motivation for Washington's opposition to the pipeline.

In the letter to Treasury Secretary Steven Mnuchin, seen by Die Zeit, Scholz promised to provide up to 1 billion euros in public money towards building the LNG terminals if Washington agreed not to impose sanctions on the companies.

The LNG terminals were to be built at two locations on the North Sea coast.

"In return, the United States will allow the construction and operation of Nord Stream 2 to proceed unhindered," Die Zeit quoted the letter as saying. "The U.S. will not exercise its legal scope for sanctions."

 

($1 = 0.8420 euros)

(Reporting by Thomas Escritt; Editing by Hugh Lawson)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.


The quest for plant availability: Achieving improved compressor reliability and efficiency in downstream operations

Register Now

Plants in the downstream industry require a great degree of operational availability, equipment reliability and efficiency: These factors are crucial for end users, as thousands of complex and intricate processes are operating in parallel – many of them are driven and safeguarded by compression technologies.

Uniformly, reliability is a universal maxim, and this holds particularly true for handling and compressing challenging gases processed in such plants. In fact, there is a direct, vital link between the reliability of compressor equipment designed for and used in these processes and the availability of the plant.

With a focus on different chemical/petrochemical, syngas and LNG applications our speaker Ulrich Schmitz will introduce to the listeners how centrifugal compression technologies such as integrally geared can be designed and employed reliably to perform the key process challenges of the industry, while also contributing to an efficient operation.

September 24, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.