ConocoPhillips, QatarEnergy to supply Germany with LNG

The first such supply agreement from Qatar’s North Field expansion project for Europe was inked on Tuesday by QatarEnergy and ConocoPhillips (COP.N) to export liquefied natural gas (LNG) to Germany for at least 15 years starting in 2026.

According to QatarEnergy’s CEO, the agreement will provide Germany with 2 million tonnes of LNG a year, arriving from Ras Laffan in Qatar to Germany’s northern LNG port of Brunsbuettel.

The agreed-upon quantities will be bought by a ConocoPhillips wholly-owned subsidiary and shipped ex-ship to the developing German receiving terminal.

The agreement was reached just a few days after QatarEnergy and Sinopec in China signed a 27-year sales and purchase agreement.

The North Field is a portion of the largest gas field in the world, South Pars, which Qatar and Iran jointly own.

The first and larger of the two phases of the North Field development plan, North Field East (NFE), involves six LNG trains that would increase Qatar’s liquefaction capacity to 126 million tonnes per year by 2027 from 77 million. QatarEnergy secured five deals for NFE earlier this year.

Since Russia’s invasion of Ukraine in February, there has been fierce rivalry for LNG, as Europe needs a significant amount to help replace Russian pipeline gas, which accounted for roughly 40% of the continent’s imports before.

Tuesday, Kaabi stated that more supply was still being discussed with other German businesses.

Source: Reuters

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