QatarEnergy, ConocoPhillips sign agreement to supply LNG to Germany

QatarEnergy has signed two long-term LNG sale and purchase agreements (SPAs) with ConocoPhillips affiliates for the delivery of up to two million tons per annum (MTPA) of LNG from Qatar to Germany.

A ConocoPhillips wholly owned subsidiary will purchase the agreed quantities to be delivered ex-ship to the “German LNG” receiving terminal, which is currently under development in Brunsbüttel in northern Germany, with deliveries expected to start in 2026, QatarEnergy said in a statement.

QatarEnergy, ConocoPhillips sign long-term supply agreement of Qatari LNG to Germany for at least 15 years pic.twitter.com/daUMUYbfdZ

— QatarEnergy (@qatarenergy) November 29, 2022

The LNG volumes will be sourced from the two joint ventures between QatarEnergy and ConocoPhillips that hold interests in Qatar’s North Field East (NFE) and North Field South (NFS) projects.

“We are pleased to sign these agreements with our partner ConocoPhillips to supply up to 2 million tons per annum of LNG to Germany from the two QatarEnergy-ConocoPhillips joint ventures in the NFE and NFS LNG expansion projects respectively, starting in 2026,” said Saad Sherida Al-Kaabi, president and CEO of QatarEnergy. Al Kaabi is also the Minister of State for Energy Affairs.

“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. Such investments also include the execution of the largest LNG ship building programme in the history of the energy sector, as well as securing long-term commitments in LNG receiving infrastructure in several European countries.”

“QatarEnergy and ConocoPhillips are excited for the opportunity to responsibly and securely supply world markets with LNG from the Qatari expansion projects,” added Ryan Lance, chairman and CEO of ConocoPhillips. These agreements will provide an attractive LNG offtake solution for our new joint ventures with QatarEnergy and position the joint ventures as reliable sources of LNG supply into Europe.”

ConocoPhillips’ partnership in the North Field LNG expansion projects is made up of a 3.125 per cent share in the NFE project and a 6.25 per cen share in the NFS project, which are planned to commence production in 2026 and 2027, respectively.

Read: ConocoPhillips wins stake in QatarEnergy’s NFS expansion project