Germany Signs 'At Least 15-Year' Long-Term LNG Supply Contract with Qatar

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Germany and Qatar have signed a long-term liquefied natural gas (LNG) supply contract with a minimum duration of 15 years, Bloomberg reported on the 29th (local time).

Qatar Energy, the state-owned energy company of Qatar, signed a long-term gas supply contract with U.S. energy company ConocoPhillips on the same day to supply LNG to Germany for 15 years starting from 2026.

The annual gas supply volume is up to 2 million tons, which is about 6% of the gas imports Germany received from Russia last year.

Germany concluded the supply contract after months of negotiations with Qatar starting from March, immediately after Russia invaded Ukraine.

Saad bin Sherida Al-Kaabi, Qatar's Minister of Energy, held a press conference in Doha, the capital of Qatar, on the same day, emphasizing the excellent relationship with the German government by stating, "This is an obligation to the people of Germany."

Chancellor Scholz, after meetings with heads of the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the International Labour Organization (ILO), and the World Trade Organization (WTO), said at a joint press conference, "This contract will be an important cornerstone of Germany's energy security." He also stated that international issues should not result in countries raising trade barriers.

On the 15th, Germany completed its first ship-shaped floating LNG terminal in Wilhelmshaven on the North Sea coast. From mid-January next year, LNG carriers from the U.S. and other countries will dock at this terminal to supply gas to Germany. By the end of the year or early next year, a ship-shaped floating LNG terminal is also expected to be completed in Brunsb?ttel. Additionally, a fixed LNG terminal will be completed in Brunsb?ttel by 2026. LNG from Qatar will be distributed throughout Germany from this location. Germany also plans to build LNG terminals in Stade, Schleswig-Holstein, and Lubmin, Mecklenburg-Vorpommern.