Energy Supply: Reiche Calls for Long-Term Gas Contracts to Secure Europe s Supplies

Berlin: Push for long-term gas contracts

German Economy Minister Katherina Reiche (CDU) is urging the use of long-term supply contracts to strengthen gas security in Germany and across Europe. Speaking in Berlin, Reiche said the government needs more binding deals with a broad range of suppliers to increase the reliability of gas deliveries for the coming years.

State-backed buyer to launch LNG tender for 20272036 deliveries

The state-owned gas buyer Sefe has announced it will open a tender for liquefied natural gas (LNG) deliveries covering the period from 2027 to 2036. Sefe said the tender is specifically aimed at supplying Germany, France, the Netherlands and Belgium, and is not intended for deliveries to destinations outside Europe.

Sefe said the tender will be open to both LNG producers and other market participants and is scheduled to start on Tuesday. Frédéric Barnaud, Chief Commercial Officer (CCO) of Sefe, explained the rationale: With this LNG tender we want to specifically address market participants to cushion potential supply disruptions in the Middle East and to strengthen Europes supply security.

VNG to increase Algerian imports

Reiche also announced that the energy group VNG, based in Leipzig, plans to increase its gas imports from Algeria beyond earlier projections. The move is part of a broader effort to diversify supply sources and reduce dependency on any single supplier or region.

Concerns about EU methane regulation and national penalties

The minister warned that aspects of the EUs proposed methane regulation could unintentionally hamper LNG deliveries to Germany. Reiche pointed in particular to strict national sanctions for breaches of methane rules, arguing that overly rigid enforcement might deter some deliveries or complicate trade.

She called for greater pragmatism in how the rules are applied and said her ministry is in discussions with the environment ministry to ensure that methane provisions do not create avoidable barriers to securing imports that are needed for Europes energy stability.

Why long-term contracts and tenders matter

Long-term contracts provide predictability for suppliers and buyers. They can secure capacity and lock in physical deliveries over multiple years, which matters for planning infrastructure, financing projects and ensuring steady flows during times of market stress. For governments and large buyers, multi-year agreements with multiple partners reduce the risk of sudden shortages and large price spikes.

At the same time, tenders like the one announced by Sefe open the market to more participants and can attract new suppliers. The combination of targeted tenders and long-term deals aims to balance competition and security: tenders can bring new sources and competitive pricing, while long-term contracts stabilize supply relationships.

Regional focus and geopolitical context

Sefes decision to limit tendered deliveries to Germany, France, the Netherlands and Belgium reflects a European regional approach to supply security. The focus on Europe is likely driven by logistical planning, contractual certainty and the need to protect regional markets from disruption during times of geopolitical tension.

The mention of the Middle East by Sefes CCO underlines a concern about possible supply interruptions in that region, while the increased purchases from Algeria show a parallel approach to diversify away from high-risk or single-source dependencies.

Looking ahead

Ministers and market actors in Germany are working on several fronts: signing long-term contracts, launching tenders to attract LNG supply, and negotiating regulatory approaches that protect the climate while enabling secure deliveries. The challenge will be to find the right balance between environmental standards and practical measures needed to keep gas flowing to consumers and industry.

The announcements from Reiche and Sefe mark a clear policy direction: Europe should secure gas supplies through a mix of long-term agreements and market-based tenders, while ensuring regulation does not unintentionally block needed imports. Discussions between economic and environmental ministries will be critical to reconcile climate goals with urgent energy security needs.

With energy markets tense and geopolitical risks remaining, Germanys push for durable contracts and targeted LNG procurement aims to strengthen the continents resilience and reduce the risk of supply shocks in the coming decade.

(Article includes reporting from Reuters.)