German state energy giant Uniper has begun talks with Canada on expanding liquefied natural gas (LNG) purchases. Berlin wants to diversify supplies and reduce dependence on energy resources from the United States. This is reported by Reuters, citing sources familiar with the situation, writes UNN.
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Last year, the US share of LNG imports to Germany reached a record 96%. However, the US and Israel's war against Iran has already led to a halt in production at a number of Middle Eastern fields, forcing the German government to seek more stable partners.
The negotiations are taking place at both corporate and political levels and are part of a broader agreement: Germany expects to win a Canadian submarine tender in exchange for investments in energy and rare earth metal mining.
The main obstacle to cooperation at the moment is the lack of necessary infrastructure. Canada's main export facilities are concentrated on the west coast, while there are almost no terminals in the east, closer to Europe. The project will require the construction of new regasification plants. But Ottawa is also interested in new buyers to reduce its own export dependence on the American market.