German Chancellor Angela Merkel has agreed to import more liquefied natural gas (LNG) from the U.S. – a major concession to President Trump, who’s pressured the European Union to do so as part of renewed trade negotiations.
Continue Reading Below
“That means for the first time, we are going to have an LNG terminal in Germany,” U.S. Ambassador to Germany Ric Grenell said on Tuesday during an interview with FOX Business’ Neil Cavuto. “And it’s very good news.”
The German government will co-finance the construction by a private consortium of a $576 million LNG shipping terminal in northern Germany, according to a Monday report from The Wall Street Journal, which cited anonymous officials.
So far, the government is weighing three sites, all of which are equipped with teams that are looking at financing the project, Grenell said. But he also suggested that Merkel may expand the energy market even more by investing in two LNG sites.
“They haven’t announced how much, but have said they’ll invest in at least one site,” he said.
Germany currently acquires most of its natural gas from Russia by pipeline, so U.S. officials reportedly hope that an increase in American gas might help reduce the threat to Washington by decreasing Germany’s reliance on Russia for its energy.
According to the Journal, Merkel told lawmakers that the terminal will likely not break even for at least 10 years.
“There’s a whole bunch of companies that are very eager, including U.S. companies, to build it, to be a part of it,” Grenell said.