Germany signs Qatar deal to receive LNG for 15 years from 2026
Vice-Chancellor Robert Habeck welcomed the signing of a 15-year contract between QatarEnergy and the American company ConocoPhillips to deliver two million tonnes of liquefied natural gas (LNG) to Germany.
Qatar will supply liquefied natural gas to Germany for at least 15 years beginning in 2026, according to new agreements signed on November 29th, 2022, by state firm QatarEnergy and US company ConocoPhillips.
According to two sale and purchase agreements, a wholly-owned subsidiary of ConocoPhillips will purchase up to 2 million tonnes per annum (MTPA) of LNG from Qatar and deliver it to the Brunsbüttel LNG import terminal in northern Germany.
The LNG volumes will be sourced from two joint ventures between QatarEnergy and ConocoPhillips that own stakes in Qatar’s North Field East (NFE) and North Field South (NFS) projects, which are expected to come online between 2026 and 2027.
Qatar has historically preferred long-term supply agreements with customers, which Europe rejected earlier this year. However, in recent months, European companies have begun negotiations with LNG providers for longer-term supply to ensure supply security and reduce exposure to volatile spot LNG prices. For example, Germany was Russia’s top pipeline gas customer in Europe before the Russian invasion of Ukraine, but it is now shifting to LNG imports.
Commenting on the agreement with Germany, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, said, “These agreements are noteworthy for several reasons.” For starters, they are the first long-term LNG supply to Germany, with a supply period of at least 15 years, contributing to Germany’s long-term energy security.”
“Germany is Europe’s largest gas market, with significant demand in the industrial, power, and household sectors. We are committed to contributing to Germany’s and Europe’s overall energy security,” Al-Kaabi added.
ConocoPhillips Chairman and CEO Ryan Lance stated, “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.”
The long-term deal to supply LNG to Germany comes just a week after Qatar signed the industry’s longest-term contract, a 27-year deal to supply LNG to Chinese state energy giant Sinopec.