Europe

Germany agrees 15-year LNG supply deal with Qatar

Germany is set to receive new flows of Qatar liquefied natural gas (LNG) from 2026 after Qatar Energy and ConocoPhillips COP.N signed two sale and purchase agreements for exports of at least 15 years on Tuesday .

Competition for LNG has intensified since Russia invaded Ukraine in February, with Europe in particular needing huge volumes to replace Russian pipeline gas, which accounted for nearly 40% of the continent’s imports. I’m doing it.

The deal is the first from Qatar’s Northfields expansion project to Europe and will provide Germany with 2 million tonnes of LNG per year arriving at the German Northern LNG Terminal in Brunsbüttel from Ras Laffan, Qatar. CEO said.

“(This contract) is the first-ever long-term LNG supply contract to Germany, extending the supply period by at least 15 years, thus contributing to Germany’s long-term energy security,” said Saad al-Kaabi in Communal News. A meeting with Ryan Lance, CEO of ConocoPhillips mentioned in .

A subsidiary of ConocoPhillips will purchase agreed quantities that will be delivered to a receiving terminal in Germany, which is currently under development.

Qatar Energy and a German utility company have been thrashing out long-term LNG deals for much of this year as Berlin seeks an alternative to Russia, Germany’s biggest gas supplier.

Europe’s largest economy, which relies primarily on natural gas to support its industry, aims to replace all Russian energy imports by mid-2024 at the earliest.

Germany is Europe’s largest importer of Russian gas and will need about 40 million tons of LNG to replace the 50 billion cubic meters (bcm) of pipeline gas it was getting from Moscow. Gas consumption in 2021 was approximately 88 bcm.

“We believe that by 2027, Germany will consume about 73 billion cubic meters of gas annually, so this deal could cover about 3.7% of that,” said Kaushal Ramesh, senior LNG analyst at Rystad Energy. says. “This is not a trivial amount, it is a big step in diversifying our supply.”

Ongoing consultation

Germany’s Economy Minister Robert Habeck said on Tuesday that the 15-year term of the deal was “excellent”.

Andreas Schroeder, head of energy analysis at ICIS, said the 2026 start date was delayed because Germany needed LNG in 2023 and 2024.

“If German players cannot secure enough volume at a good price in 2023, they will have to return to their spot in the LNG market and be exposed to global price volatility.”

Kirby said negotiations were still underway with other German companies for further supplies.

Asked on Tuesday whether criticism of some German politicians over Qatar hosting the soccer World Cup affected negotiations, Kaabi previously denied the possibility, but Qatar Energy He said he kept politics and business separate.

The deal comes just days after QatarEnergy signed a 27-year sale and purchase agreement with China’s Sinopec. Northfield is part of the world’s largest gas field, which Qatar shares with Iran.

QatarEnergy signed five contracts for Northfield East (NFE) earlier this year. This is the first and larger of his two-phase Northfield expansion plan, which will boost Qatar’s liquefaction capacity to 126 million tonnes per annum by 2027 with six of his LNG. Includes train. 77 million.

(Reuters)

https://in-cyprus.philenews.com/news/international/germany-agrees-15-year-lng-supply-deal-with-qatar/ Germany agrees 15-year LNG supply deal with Qatar

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