This STRATEGY paper evaluates the prospects for the development of a strategic energy partnership between Australia and Germany based on the potential for Australia to emerge as Europe’s major supplier of liquefied natural gas (LNG).

At first glance, Australia’s growing export capacity, backed by its reputation as a safe, reliable and secure supplier, seems to be a perfect fit in Europe’s quest for new suppliers and in Germany’s search for new sources of electricity.

Despite these potential synergies, this paper argues that Australia is unlikely to emerge as an LNG supplier to Germany in the foreseeable future.

However, there’s much value for Australia and Germany in strengthening the broader energy relationship.

Regardless of their status (as importers or exporters) and policy approach (market-based or strategic), states are locked in a web of interdependent energy relationships.