Germany's Energy Strategy: Expanding Supply Sources and Reducing Dependence on the US

Germany is facing a fundamental challenge: how to ensure energy security for Europe’s largest economy without becoming overly dependent on a single supplier. This issue has become more urgent as Chancellor Olaf Scholz and a delegation of business leaders depart for the Middle East this week, with a clear goal: diversify sources of liquefied natural gas (LNG) and other energy resources.

Energy Mission: From Riyadh to Doha

Scholz’s itinerary includes three strategic stops. First is Riyadh, where he will meet Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia. Then, Scholz will continue to Qatar and the United Arab Emirates before returning to Berlin. This diplomatic trip is not only a matter of courtesy but also reflects Germany’s efforts to protect its economy from geopolitical volatility.

Risks of Over-Reliance on a Single Source

Energy experts at the Helmholtz Research Centre in Berlin have warned of potential dangers. Susanne Nies, one of the leading analysts, emphasizes that excessive dependence on US LNG poses risks not only in terms of price but also geopolitical variables. Claudia Kemfert, head of Energy, Transport, and Environment at the German Institute for Economic Research, agrees, pointing out that unforeseen changes in US policy could directly impact the European economy.

Alternative Options: Beyond Traditional Supply Chains

Instead of continuing to rely on one country, Germany needs to consider other options. Pipeline gas from Norway is a potential choice, providing a stable energy source from a close European partner. Additionally, LNG from Canada and Australia are also being considered as supplementary options. This approach not only helps reduce geopolitical risks but also creates a better balance in the global energy market.

Long-Term Direction: Moving Away from Fossil Fuel Dependence

However, experts also note that simply switching from one supplier to another is only a temporary solution. Kemfert warns that Germany should learn from these events: it is necessary to reduce overall dependence on fossil fuels. This means increasing investment in renewable energy sources, improving energy efficiency, and building a sustainable energy foundation for the future. Germany’s short-term diversification strategy, including gas from Norway, is a step forward, but it must be complemented by a long-term commitment to a comprehensive energy transition.