Germany to Receive Additional Qatari LNG Shipments from 2026

Germany is set to receive additional volumes of Qatari LNG from 2026 as part of two sales and purchase agreements between QatarEnergy and ConocoPhillips. With these deals, Germany has managed to cover its export for at least 15 years. Competition for LNG has become intense since Russia invaded Ukraine in February. Europe joined Asia’s big importers of LNG to replace the Russian pipeline gas, which used to make up 40% of its imports. The deal, the first of its kind to Europe from Qatar’s North Field expansion project, will provide Germany with 2 million tonnes of LNG annually.

“(The agreements) mark the first ever long-term LNG supply agreement to Germany, with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security,” Qatar’s minister of energy and QatarEnergy CEO Kaabi said in a joint news conference with ConocoPhillips CEO Lance.

A subsidiary of ConocoPhillips will purchase the agreed to quantities to be delivered to the German receiving terminal, which is currently under development.

QatarEnergy and German utility firms have been in talks on long-term LNG deals for much of this year as Berlin looks for alternatives to Russia, which is Germany’s biggest gas supplier.

Europe’s biggest economy, which mainly relies on natural gas to power its industry, aims to replace all Russian energy imports by as soon as mid-2024.

Germany, Europe’s biggest gas importer, will need 40 million tonnes of LNG to replace 50 billion cubic meters (bcm) of pipeline gas it used to receive from Moscow. Its gas consumption in 2021 was around 88 bcm.

The country’s consumption is expected drop to 73 bcm by 2027, so this deal could cover around 3.7% of that.

Still, some analysts think 2026 is late and Germany needs LNG for 2023 and 2024, in order to secure sufficient volumes and avoid exposure to spot prices.

Kaabi said negotiations were still taking place with other German companies for further supply.

QatarEnergy signed a 27-year sales and purchase agreement with China’s Sinopec a few days ago. The North Field is part of the world’s biggest gas field, which Qatar shares with Iran.

QatarEnergy earlier this year signed five deals for North Field East (NFE), the first and larger of the two-phase North Field expansion plan, which includes six LNG trains that will ramp up Qatar’s liquefaction capacity to 126 million tonnes per year by 2027 from 77 million.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Special Report-European Power Prices Are Dependent on Wind

Part of Europe’s energy crunch this year was due to wind speeds not being high enough so windmills across the continent generated less electricity. Because of low power generation from wind, utilities had to turn to scarce and expensive coal and natural gas to meet demand.  

Taiwan Expects China to Increase Intimidation After Xi Secures Third Term

Taiwan expects Beijing to increase its threats to bring the island under Chinese control once Xi secures a third presidential term, the head of Taiwan’s China-policy making Mainland Affairs Council Chiu said on Thursday. Beijing’s once in five years Communist Party Conngress is scheduled to start on Oct. 16, where Xi is poised to secure a historic third term. China has ramped up its military presence around the island following U.S. House Speaker Pelosi’s visit to Taipei in August. 

GM, LGES to Invest Additional $275 Million in Tennessee Battery Plant

General Motors (GM) and South Korean battery maker LG Energy Solution (LGES) said on Friday that they would invest another $275 million in their Tennessee battery cell plant to increase production by more than 40%. With this investment, the capacity of Ultium Cells Spring Hill plant will increase from 35 GWh to 50 GWh when the plan comes online in 2023. It is one of at least four U.S. joint venture battery plants planned to supply GM electric vehicles (EVs) as the largest U.S. automaker ramps up production.

Stay informed

error: This content is protected !!