Qatar to supply Germany with LNG under long-term gas deal with ConocoPhillips

Qatar Energy, ConocoPhillips sign agreement for Qatar to send up to 2 million tonnes of LNG a year to Germany from 2026
The gas will come from ConocoPhillips’ joint ventures in Qatar and will be delivered to the Brunsbuttel floating import terminal that is under construction

Middle East

Bloomberg

Published: 6:29pm, 29 Nov 2022

Why you can trust SCMP

Qatar has agreed to supply Germany with liquefied natural gas (LNG) under a long-term deal that will go a small way to helping the European country replace piped flows from Russia.

State-owned Qatar Energy and ConocoPhillips have signed agreements that will see the Persian Gulf state send up to 2 million tonnes of LNG a year to Germany from 2026. The deals will last at least 15 years, Qatar’s energy minister Saad al Kaabi told reporters in Doha alongside ConocoPhillips CEO Ryan Lance.

Gulf exporters stay neutral as Europe fears for Russian gas supplies

Germany has been one of the worst hit European nations after a reduction in supplies of gas from Moscow. The nation which used to get more than a half of its gas via pipelines from Russia, has rented five floating LNG terminals which it will rely on in future. Closing a deal now means further diversification of LNG sources, key for Germany to go through this and next winter.

The deal with Qatar is only a small fraction of the 46 billion cubic metres of Russian gas Germany imported in 2021. But signing an agreement is significant as the global LNG market is increasingly competitive, with Europe fighting over cargoes with Asia during the winter.

Germany has been locked in negotiations with the Qataris for additional supplies it desperately needs to keep its industrial plants operating. Berlin had been pushing back against longer contracts of as much as 25 years that would contradict its climate goals.

01:32

Chinese heater factories are making a killing as Europe prepares for winter amid gas shortage

Qatar is continuing to talk to German buyers about additional supplies, Qatar’s energy minister, Saad al Kaabi said. He previously said Qatar is in talks with Germany’s RWE and Uniper SE about long-term LNG contracts.

The gas will come from ConocoPhillips’ joint ventures in Qatar and will be delivered to the Brunsbuttel floating import terminal that is under construction.

The five import facilities chartered by the German government will cost a total of €6.5 billion (US$6.7 billion) over the next 10-15 years. Once operational, they will be able to cover around a third of Germany’s current gas demand, according to a government estimate.

Post