Qatar, Germany Sign Liquified Natural Gas Deal Amid Cut in Russian Supply
Qatar will supply liquefied natural gas to Germany according to a 15-year deal signed on Tuesday, as the Central European industrial powerhouse seeks alternatives to Russia as an energy supplier due to Moscow’s invasion of Ukraine.
QatarEnergy and ConocoPhillips signed two sales and purchase agreements to export liquefied natural gas (LNG) from Qatar’s North Field East and North Field South expansion projects to Germany for at least 15 years starting in 2026.
Two million tons of LNG are expected to arrive annually from Ras Laffan in Qatar to Germany’s northern LNG terminal of Brunsbuettel, Qatar’s Energy Minister and CEO of QatarEnergy Saad Sherida al-Kaabi said in a joint news conference with ConocoPhillips CEO Ryan Lance. “[The agreements] mark the first ever long-term LNG supply agreement to Germany, with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security,” said Kaabi.
Negotiations with other German companies for further supply were still underway, Kaabi added.
The deal comes just days after QatarEnergy signed a 27-year sales and purchase agreement with China’s Sinopec.
Qatar’s North Field is part of the world’s biggest gas field, shared between the tiny Arab state and Iran, which calls its portion of the field South Pars.