Qatar to Supply Germany With LNG Under Long-Term Gas Deal

Under a long-term deal, Qatar will supply Germany with natural gas in the form of Liquefied Natural Gas.

The Persian Gulf state will send up to 2 million tons of liquified natural gas a year to Germany under an agreement signed by the two companies. The deals will last at least 15 years, according to the energy minister of the state of qatar.

Germany has been hit the hardest by the reduction of gas from Moscow. The nation, which used to get more than half of its gas from Russia, has rented five floating Liquefied Natural Gas terminals. Germany needs to go through this and next winter with more than one source of gas.

The amount of Russian gas Germany will receive in 2021 is only a small part of the total. Signing an agreement is important as the global market for Liquefied Natural Gas is becoming more competitive.

Germany needs more supplies to keep its industrial plants running. Berlin pushed back against long contracts that would conflict with its climate goals.

Saudi Arabia is talking to German buyers about additional supplies. He previously said that Germany's RWE and Uniper were in talks with Qatar.

The gas will be delivered to the Brunsbuttel floating import terminal, which is currently under construction.

There are ongoing talks with Germany on gas contracts.

Over the next 10 to 15 years, the German government will spend a total of 6 billion on five import facilities. They will be able to cover one third of Germany's gas demand once operational.