Qatar Energy Company intends to supply Germany with around two million tonnes of liquefied gas per year, starting in 2026, as part of the long-term agreements signed today, Tuesday, November 29, 2022.
The deals, which will last 15 years, are part of efforts by Europe’s largest economic power to secure its fuel needs away from Russian supplies.
the CEO said Qatar Energy Saad bin Sherida Al-Kaabi, said that the two agreements between Berlin and Doha “help support our efforts to promote Energy security in Europe in general, and in Germany in particular.
Details of the agreement
Qatar Energy has announced the signing of two long-term sales and purchase agreements between Qatar Energy subsidiaries and a company ConocoPhillips Sell up to two million tons a year of liquefied gas to Germany.
Under the two agreements, a subsidiary of ConocoPhillips will purchase the contracted volumes and supply them to the German LNG receiving terminal currently under development in Brunsbüttel in northern Germany starting in 2026.
The quantities will be supplied by the two companies owned by Qatar Energy and ConocoPhillips in Qatar, which have stakes in both the North East Field and North South Field projects.
The agreement was signed by Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, and Ryan Lance, President and CEO of ConocoPhillips, during a ceremony held today at the headquarters of Qatar Energy in Doha, in the presence of some senior officials of the two companies.
North Field
Al-Kaabi affirmed the State of Qatar’s commitment to energy security in Europe and Germany, saying, “We are delighted to sign these two agreements with our partner ConocoPhillips to supply up to two million tons per year of LNG from the two LNG production plants expansion plans in North Field the eastern and north-south range, starting in 2026.
He added: “The importance of these two agreements is for several reasons, as they represent the first long-term supply agreement for liquefied natural gas to Germany, and for a supply period extending for at least 15 years, which helps to provide energy security for Germany”.
He stressed that it is the culmination of the efforts of two trusted partners – Qatar Energy and ConocoPhillips – who have gone on for many years to provide reliable and credible solutions to consumers around the world.
He stressed that the signing of the agreements is tangible proof of Qatar Energy’s determination to provide reliable energy supplies to all major markets in the world and of our commitment to the German people.
largest gas market
Al-Kaabi added: “Germany represents the largest gas market in Europe, and is characterized by a large demand in the industrial, electricity and domestic consumption sectors, and we are committed to help support energy security in it and in Europe generally.”
He explained that Qatar has demonstrated this commitment through large investments in various stages of the gas industry, including projects to increase Qatar’s liquefied natural gas production capacity and the development of the Golden Pass project for natural gas exports. liquefied in the United States.
He said: “We have implemented the largest LNG tanker program in the history of the energy sector and have made long-term commitments in the infrastructure for receiving, storing and distributing LNG in a number of European countries.”
He stressed that Qatar Energy is conducting dialogues with its European partners with the aim of achieving higher levels of energy security, market stability and a smoother transition to low-carbon energy to the benefit of all.
Expansion projects
For his part, the ConocoPhillips CEO said, “We are delighted with this opportunity to responsibly and safely supply LNG from Qatari expansion projects to global markets.”
Lance added, “These two deals will provide an attractive opportunity to purchase LNG from our new joint ventures with Qatar Energy and will enhance the status of our joint ventures as reliable sources of LNG supply in Europe.”
Interestingly, ConocoPhillips is one of the international partners in the two expansion projects of North East Field with a 3.125% stake and North South Field with a 6.25% stake, which will start production in 2026 and 2027 respectively.
Asian European rivalry
Asian countries, led by China, Japan and South Korea, are Qatar’s main gas market, which European countries are increasingly trying to appropriate, after the Russian war against Ukraine has raised concerns for Power supply.
The deal with Germany comes about a week after Qatar Energy announced a 27-year deal – the longest in the history of liquefied natural gas deals – to supply China with 4 million tonnes of gas annually.
Qatar negotiations addressed Germany There are several difficulties, because Berlin and other European countries avoid signing long-term agreements such as those stipulated with Asian countries.
Al-Kaabi stressed that Doha continues to talk to German buyers about additional supplies, noting that the new deal is evidence of Qatar Energy’s determination to provide reliable energy supplies to all major markets around the world.
Al-Kaabi had previously said that his country was in talks with German companies “RWE” and “Uniper” for long-term contracts for liquefied natural gas.
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