QatarEnergy and ConocoPhillips have signed a 15-year LNG supply deal with Germany, starting in 2026.
According to the chief executive of QatarEnergy, a state-owned petroleum company, the agreement will allow Germany to receive 2 million tonnes of LNG each year. Shipments from Ras Laffan in Qatar will arrive in Germany’s northern LNG terminal at Brunsbuettel.
Ryan Lance, chairman and CEO of ConocoPhillips, an independent exploration and production company, said: “These agreements will provide an attractive LNG offtake solution for our new joint ventures with QatarEnergy and position the joint ventures as reliable sources of LNG supply into Europe.”
Qatar’s energy minister, Saad al-Kaabi, said: “These agreements are momentous. They mark the first-ever long-term LNG supply to Germany. This is a concrete demonstration of Qatar Energy’s resolve to provide reliable energy supplies to all major markets around the world and of our commitment to the German people.”
He also stated that Qatar would continue to discuss additional shipments with German buyers. Al-Kaabi noted that Qatar is negotiating long-term LNG contracts with German energy companies RWE and Uniper SE.
BNN Bloomberg News reported that after securing floating LNG import facilities to ease an unprecedented energy price crunch, the German Government now seeks additional gas supplies. The country initially feared energy shortages after Russia cut off gas supplies to Europe as retaliation for the sanctions imposed after its invasion of Ukraine.
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However, Germany has leased four floating storage and regasification units to import LNG directly and replace Russian volumes. According to the world economic forum, German utilities have existing supply agreements with Qatar, Australia and the United States.
The German government’s five import facilities will cost $6.7 billion over the next 10 to 15 years. According to a government estimate, once they are up and running, they will be able to supply about one-third of Germany’s current gas demand.