Qatar has agreed to supply LNG to Germany under a long-term deal, marking a move to help the European country replace pipeline flows shortage from Russia.
The state-owned Qatar Energy Company and ConocoPhillips have signed agreements that will send up to two million tons of liquefied natural gas annually from the Gulf state to Germany, starting in 2026.
The deals will last for at least 15 years, according to statements by the Qatari Energy Minister Saad Al-Kaabi to reporters in Doha, in the presence of Ryan Lance, CEO of ConocoPhillips.
Al-Kaabi considered that "these agreements are very important" and that they "represent the first long-term supply of LNG to Germany." "This is tangible evidence of Qatar Energy's determination to provide reliable energy supplies to all major markets around the world, and our commitment to the German people," he said, noting at the same time that Qatar continues to talk to German buyers about additional supplies.
The gas will come from ConocoPhillips' joint ventures in Qatar and will be delivered to the floating import terminal under construction at Brunsboutel.
The deal with Qatar represents 6% of the 46 billion cubic meters of Russian gas that Germany imported in 2021. However, signing agreements with the Gulf state is important in light of the growing competition in the global liquefied natural gas market, as Europe is racing with Asia to secure shipments for the winter.
Five import facilities leased by the German government will cost a total of €6.5 billion ($6.7 billion) over the next 10 to 15 years. Once operational, it will be able to cover about a third of Germany's current gas demand, according to government estimates.