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Qatar strikes LNG deal with Germany

DW, 29 Nov 2022
The deal struck with QatarEnergy is set to go into effect in 2026 and last 15 years. Berlin is seeking to replace Russian gas, which used to cover over one half of Germany's annual supply.
Qatar's state-owned oil and gas company has agreed to send Germany two million tons of liquefied natural gas (LNG) a year, QatarEnergy's CEO said on Tuesday.

Germany consumes around 100 billion cubic meters of natural gas annually, a little over half of which had been coming from Russia. The deal struck with QatarEnergy covers around 2.7 billion cubic meters per year.

Qatar aims to "contribute to efforts to support energy security in Germany and Europe", Energy Minister and QatarEnergy CEO Saad Sherida al-Kaabi. "Germany represents the largest gas market in Europe ... and we are committed to support its energy security," Saad al-Kaabi.

What do we know about the deal?
The gas will arrive from Ras Laffan in Qatar to Germany's LNG terminal of Brunsbüttel in the northern state of Schleswig-Holstein. Gas will be sold to the US company Conoco Phillips, which will deliver it to Germany. Supply is set to begin in 2026, and will continue for at least 15 years. China, Japan and South Korea are currently the main market for Qatar's gas. Last week, Doha struck a 27-year agreement to ship four million tons of LNG a year to China. Negotiations between Berlin and Doha had previously struggled as Germany was reticent to sign a long-term gas deal. German Economy Minister Robert Habeck said that although Berlin would have nothing against signing a deal that lasts 20 years or more, companies have to be "aware of Germany's long-term climate goals."

Why is Germany importing Qatari gas?
Moscow has slashed gas supplies to European countries over their support for Kyiv following Russia's invasion of Ukraine. Germany, once a major importer, hasn't received any Russian gas since August.

The country is building five LNG terminals in order to replace Russian supplies. Currently, much of Germany's gas supply comes from or via Norway, the Netherlands and Belgium. Berlin has also temporarily reactivated old oil- and coal-fired power stations and extended the life of the country's last three nuclear power plants.


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