Germany signs 15-year oil deal with Qatar amid Ukraine War
The agreement will provide 2 million tons of gas to Germany annually
Starting in 2026, Qatar will supply Germany with liquefied natural gas for the next 15 years, as gas supplies from Russia have gone dry due to the war in Ukraine.
The agreement is between Qatar Energy, the country's state-owned oil company, and Germany's ConocoPhillips, which will give Europe access to oil from Qatar's North Field expansion project for the first time.
Officials from both countries did not provide an official price tag to the deal, but Qatar will send up to 2 million tons of gas to German annually via the Brunsbuettel Terminal that is currently under construction, according to the Associated Press.
ConocoPhillips holds a small ownership stake in the North Field project, which Qatar shares with Iran in the Persian Gulf. Earlier this month, Qatar signed a similar 27-year sales and purchase agreement with China's Sinopec.
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"[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," said Qatar Energy CEO Saad Al Kaab in a joint news conference with his German counterpart.
Following Russia's February invasion of Ukrainian territory, Moscow cut key gas supply lines to European countries that sanctioned Russia and supported Ukraine via military aid.
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Germany was thrown into a fueling inflation and energy crisis because more than half its gas came from Russia at the time. The gas supply to Germany officially shut down in August, forcing the European state to find new suppliers going into winter.
Moreover, the majority of Germany's current supply of gas comes from more European-friendly states such as Belgium, Norway and the Netherlands. Germany is also building five liquefied natural gas terminals to prevent a short-term energy crunch.