“Mammoth” agreement between Germany and Qatar for the supply of LNG

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The first delivery is scheduled for 2026 and the agreement has a duration of at least 15 years – It envisages the delivery of up to two million tonnes per year

Germany and Qatar have reached an agreement for the supply of liquefied natural gas (LNG), according to an announcement by the Gulf state’s energy minister. Deliveries will begin in 2026 and last 15 years.

After months of negotiations that appeared to be breaking down, Qatar’s energy minister, Saad Sarida al Kaabiannounced earlier today from Doha that the state energy giant Qatar Energy has entered into an agreement with Germany for the supply of LNG.

The gas, which comes from the North Field East and North Field South fields, will be sold to the American company Conoco Phillipswhich will then deliver it to the German Brunsbüttel.

The first delivery is scheduled for 2026 and the agreement has a duration of at least 15 years. It envisages the delivery of up to two million tonnes per year, which corresponds to 3% of Germany’s natural gas needs.

Mr. Al Kaabi also stated that Qatar Energy is in talks with other German companies. “We have good relations with German companies and with the German government,” noted the minister.

Qatar is one of the largest exporters of LNG in the world, while it has the third largest natural gas reserves, after Russia and Iran, with which it shares the world’s largest deposit.

Most exports are to Asia – mainly South Korea, Japan and India. Recently, Qatar also signed a long-term cooperation agreement with China, to which it will deliver 108 million tons over 27 years.

It is, as the Qatari Energy Minister said, the largest supply contract in the history of the LNG market.

Until now Germany, which has already completed the construction of the first of five LNG terminals, has been sourcing LNG from the US via the Netherlands, Belgium and France.

RES-EMP

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