QatarEnergy pens deals to send LNG to Germany: Update

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State-controlled QatarEnergy (QE) has signed two agreements with US firm ConocoPhillips to supply Germany with 2mn t/yr of LNG for at least 15 years starting in 2026.

The LNG will be provided from both phases of the North Field expansion — the 32mn t/yr North Field East (NFE) project, and the 16mn t/yr North Field South (NFS) — and be delivered to an LNG receiving terminal that is currently under development in Brunsbuttel in northern Germany.

ConocoPhillips is one of a number of international partners selected by QE to participate in both the NFE and NFS projects. ConocoPhillips was awarded a 3.1pc stake in NFE in June alongside TotalEnergies, Italy's Eni, Shell and ExxonMobil. And in October the US firm was awarded a 6.25pc stake in NFS alongside TotalEnergies and Shell.

"We are pleased to sign these agreements with our partner ConocoPhillips to supply up to 2mn t/yr of LNG to Germany from the two QatarEnergy-ConocoPhillips joint ventures in the NFE and NFS LNG expansion projects," QE chief executive Saad al-Kaabi said, highlighting the deals as "the first ever long-term LNG supply to Germany".

The agreement comes as Europe scrambles to secure more LNG supply to help reduce reliance on Russian gas following Moscow's invasion of Ukraine. Germany does not have any LNG import terminals in operation at the moment, but it has announced plans to install at least five floating storage and regasification units (FSRUs) in various locations in the country. The first two of these, one of which is the facility at Brunsbuttel, are due to be online at the turn of the year.

"Germany is the largest gas market in Europe, with significant demand in the industrial, power and household sectors, and we are committed to contribute to the energy security of Germany and Europe at large," al-Kaabi said.

Today's agreements come two months after Germany signed an "energy security and industry accelerator" agreement with Abu Dhabi under which state-owned Adnoc committed to reserve several LNG cargoes exclusively for German customers in 2023. Adnoc said it would also provide an LNG cargo to German utility RWE in late 2022 to be used in the commissioning of the Brunsbuttel terminal.

By Nader Itayim