Qatar Energy signed two sales and purchase agreements with ConocoPhillips to deliver up to 2 million tons of LNG to Germany each year. ConocoPhillips will purchase the agreed quantity and deliver it to the German LNG terminal, which is currently being developed in Brunsbitel and is expected to be delivered in 2026.

The company said that the LNG will come from two joint ventures between Qatar Energy and ConocoPhillips, which hold the interests in the East Area and South Area projects of Qatar's North Field. These agreements mark the first time in history that liquefied natural gas will be supplied to Germany for at least 15 years, thus contributing to Germany's long-term energy security, said Saad Al Kaabi, State Minister for Energy Affairs of Qatar. This is a concrete demonstration of Qatar Energy's determination to provide reliable energy supply to all major markets in the world, as well as our commitment to the German people.

Germany's natural gas pressure is relieved

In order to replace Russian natural gas in the short term, Germany and other European countries have resumed the operation of coal fired power plants, which has raised concerns about their ability to meet climate commitments. Germany is the largest natural gas market in Europe, with huge demand in the fields of industry, electricity and households. We are committed to contributing to the energy security of Germany and the whole Europe, Mr. Al Kaabi said.

The European natural gas market continues to adapt to the possibility of winter when the Russian natural gas volume is getting lower and lower, although Gazprom withdrew the threat of reducing the natural gas flow through the Sudzha entry point in Ukraine.

The Ukrainian transit route is one of two pipelines that are still transporting natural gas from Russia to Europe after the Beixi 1 pipeline supply was suspended indefinitely in September. The Austrian energy company OMV signed a preliminary agreement with ADNOC in Abu Dhabi to purchase LNG goods for the winter of 2023. This is the second consecutive LNG agreement reached by Qatar Energy in less than two weeks. The company recently signed a 27 year agreement to provide 4 million tons of LNG per year to Sinopec.

The current tight supply of natural gas has led to energy shortages in some regions of developing countries that rely on imported natural gas, especially Pakistan and Bangladesh. At the same time, the main growth markets of natural gas, such as India and China, will significantly reduce LNG imports in 2022.

These agreements will provide an attractive LNG off take solution for our new joint venture with Qatar Energy and position the joint venture as a reliable source of LNG supply in Europe, said Ryan Lance, CEO of ConocoPhillips. In an August report, Rystad Energy said that with the deepening of the global energy crisis and countries seeking reliable energy, the investment in new LNG infrastructure will surge, reaching 42 billion US dollars annually by 2024.Editor/XingWentao