Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Germany aims for ‘G7 plus’ global alliance to lower gas prices

Germany aims for ‘G7 plus’ global alliance to lower gas prices

Chancellor Olaf Scholz wants to cooperate with ‘friends in Japan and Korea’ instead of introducing a gas price cap.

Germany has proposed a plan to bring down gas prices by forming a buyers' alliance with energy-hungry countries in Asia to convince big exporters to lower costs.

Chancellor Olaf Scholz pitched the idea to EU leaders on the sidelines of an informal summit in Prague taking place on Thursday and Friday, three officials and diplomats told POLITICO.

Under the plan, Germany would use its presidency of the G7 group, which it holds until the end of the year, to form a global alliance to lower gas prices.

The alliance would allow the EU to team up with countries like Japan and South Korea, which are among the world's biggest buyers of liquefied natural gas (LNG), to avoid outbidding each other. It could also be used to jointly approach big gas-exporting nations like the United States, Canada and Norway, and convince them to lower prices.

One official referred to the scheme as "G7 plus" because it would involve countries like Norway that are not part of the Group of Seven, which unites the world’s largest democratic economies.

Scholz hinted at the plan during comments to reporters upon his arrival in Prague on Thursday, explicitly mentioning Japan and South Korea as potential partners.

"It's a matter of getting together and discussing how we can bring down the prices that have risen too high, for example for gas on the world market," Scholz said. "This not only affects Europe, but also our friends in Japan and Korea, for example, and many others who buy gas. Supply and demand must be brought into balance and prices must fall dramatically."

Scholz also talked about the need to reach a global solution earlier this week, arguing that it was in the interest of gas-exporting countries to have "happy" customers.

"We have to find a way to get [gas prices] down overall. This is something that is a joint effort that can only be agreed globally and where, I believe, the supplier countries ultimately also have an interest in ensuring that their customers are happy," the chancellor said during a press conference with Dutch Prime Minister Mark Rutte on Tuesday.

"I think the willingness of Norway, but also the U.S., Canada or the Arab countries and many other suppliers to cooperate is quite high. I think that's something you can also count on in what we want to achieve together," Scholz added.

The German proposal comes as a large number of EU countries — including France, Belgium, Italy and Poland — are pushing to introduce a price cap on gas imports to Europe.

Germany and the Netherlands have come out against the move, fearing that such an enforced price limit would simply lead to gas exports being diverted to Asian countries, thereby causing a gas scarcity in Europe by next year.

German Economy Minister Robert Habeck accused big global gas exporters of exploiting Europe's need to find alternatives to Russian gas


EU leaders are not expected to adopt any formal agreement at Friday's informal summit. But the dispute over whether or not to introduce a gas price cap is likely to come to a head at an official EU leaders' summit in Brussels on October 20-21.

One EU diplomat said Berlin hopes to advance its global alliance plan within the coming weeks, so that it could become a valuable alternative to enforcing a price cap by then.

Earlier this week, German Economy Minister Robert Habeck accused big global gas exporters of exploiting Europe's need to find alternatives to Russian gas by charging exorbitantly high prices.

"Some countries, even friendly ones, achieve sky-high prices in some cases. Of course, this brings problems that we need to talk about," Habeck told German daily Neue Osnabrücker Zeitung.

Habeck also suggested that the EU "should bundle its market power and orchestrate smart and synchronized purchasing behavior among EU countries so that individual EU countries do not outbid each other and drive up world market prices."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
×