Merkel Has Compromised, And Can Not Buy Back The Cost And Buy American Gas.

Merkel told lawmakers at a breakfast meeting this month that the federal government would fund the development of a natural gas terminal in Hamburg, northern Germany, with a budget of 500 million euros ($576 million), according to people familiar with the matter.

Bloomberg reported more details: Macquarie Group Ltd, Australia. China's port project will be jointly developed with China's construction subsidiary. The wharf can handle up to 15% of Germany's imported natural gas. The Wall Street Journal said DowDuPont, the US chemical giant, also provided support.

The project has been delayed for years as Germany has been dependent on imported gas from Russia and has little interest in importing from the United States. Last year, Russia accounted for about 45% of German gas imports, up nearly 4% from the previous year, according to McKinsey. Natural gas sold in the U.S. is shipped by sea, and then is loaded, unloaded, stored, and transported using specialized terminal equipment. That makes us gas prices about twenty percent higher than Russia's.

President Trump has been putting pressure on Germany and the EU on this issue. Since the G-20 summit in 177, he has told European countries he hopes to make it easier for American companies to sell gas to Eastern Europe. This year, he first criticized Germany as a "Russian captive" for its energy problems at the NATO summit, and threatened to "sanction whoever builds the"Beixi 2"pipeline with Russia".

Merkel told Trump in 2017 that he should not covet Germany's energy market. However, as the EU agreed to import more US gas in July this year, her attitude began to loosen. In August, Mrs Merkel preferred to visit Azerbaijani in exchange for the refusal of her attendants, in order to explore the possibility of importing energy from Azerbaijani and reducing her dependence on Russia.

A German government spokesman said the decision was based on Germany's own economic interests, not pressure from the United States.

But German and U.S. officials say Berlin's move is intended to ease pressure on the United States to threaten sanctions against the North Creek 2 pipeline, which would double Russian gas production to Germany.

At the breakfast, Merkel told lawmakers it was not a "compromise" but a "strategic" decision with long-term returns. But she admits that the federal government may have to support the program for a long time and be prepared to fail to recover costs within 10 years.


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