29 November 2022

QatarEnergy, ConocoPhillips Sign Deal to Supply 2 Million Tons of LNG to Germany

Local
  • QATAR
  • QATAR

Doha, November 29 (QNA) - QatarEnergy announced the signing of two long-term LNG sale and purchase agreements (SPAs) between QatarEnergy and ConocoPhillips affiliates for the delivery of up to 2 million tons per annum (MTPA) of LNG from Qatar to Germany.

Pursuant to the two SPAs, 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 Brunsbuttel in northern Germany, with deliveries expected to start in 2026.

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

The SPAs were signed by HE Minister of State for Energy Affairs and President and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi, and Chairman and CEO of ConocoPhillips Ryan Lance.

Speaking at a press conference, HE the Minister of State for Energy Affairs stressed Qatar's commitment to energy security in Europe and Germany, adding:  "These agreements are momentous for several reasons. They mark the first ever long-term LNG supply to Germany with a supply period that extends for at least 15 years, thus contributing to Germanys long-term energy security. They also represent the culmination of efforts between two trusted partners, QatarEnergy and ConocoPhillips, over many years, to provide reliable and credible LNG supply solutions to customers across the globe, and today, to German end-consumers. This is a concrete demonstration of QatarEnergys resolve to provide reliable energy supplies to all major markets around the world, and of our commitment to the German people."

HE Minister Al Kaabi added: "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. The agreements we are about to sign today are a further manifestation of this commitment, which is reinforced through the sizeable investments we have made and continue to make along the entire gas value chain encompassing production capacity increases in Qatar and the Golden Pass LNG export project in the United States. Such investments also include the execution of the largest LNG ship building program in the history of the energy sector, as well as securing long-term commitments in LNG receiving infrastructure in several European countries. Our dialogue with our European partners continues with the aim of achieving greater energy security, long-term market stability, and a smoother energy transition for the benefit of all."

HE Minister Al Kaabi underlined that the State of Qatar separates politics from trade, noting that today's agreement is a deal with an American company to supply LNG to Germany. He added that the German market is an open market for German and foreign companies, and these companies can conclude agreements to supply LNG to the German market, noting that Qatar continues to talks with German buyers about additional supplies.

On his part, Chairman and CEO of ConocoPhillips Ryan Lance said: "QatarEnergy and ConocoPhillips are excited for the opportunity to responsibly and securely supply world markets with LNG from the Qatari expansion projects." "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," Lance added.

ConocoPhillips partnership in the North Field LNG Expansion Projects is made up of a 3.125% share in the NFE project and a 6.25% share in the NFS project, which are planned to commence production in 2026 and 2027, respectively.

(QNA)



Keywords

Economy, Qatar
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