(Bloomberg) — Qatar is set to supply Germany with liquefied natural gas 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 tons 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 Ryan Lance, ConocoPhillips’ chief executive offer.
“These agreements are momentous,” said al-Kaabi. “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,” he said, “and of our commitment to the German people.”
Qatar is continuing to talk to German buyers about additional supplies, he said. Al-Kaabi has 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 be delivered to the Brunsbuttel floating import terminal that’s under construction.
Germany is seeking new sources of gas after the government secured floating LNG import plants to help ease an unprecedented energy price crunch. Russia retaliated to sanctions following its invasion of Ukraine by slashing gas flows to Europe.
Five import facilities chartered by the German government will cost a total of €6.5 billion ($6.7 billion) over the next 10 to 15 years. Once operational, they will be able to cover around one third of Germany’s current gas demand, according to a government estimate.
—With assistance from Vanessa Dezem.