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SEFE said in a statement on Wednesday that the first gas deliveries under the recently signed agreement have been completed.
SEFE said that over the next ten years, ConocoPhillips will deliver up to nine billion cubic meters of natural gas from its European portfolio to SEFE at various trading hubs across Europe.
The German firm noted ConocoPhillips has a large and growing European supply portfolio including Norwegian natural gas production and LNG imports.
SEFE did not say whether the new agreement includes both LNG supplies and pipeline gas.
LNG Prime invited SEFE to comment on the matter.
SEFE’s European customer portfolio requires around 20 billion cubic meters of natural gas per year.
It said this partnership is a “perfect fit” to balance the supply and demand of both companies.
“The long-term partnership between SEFE and ConocoPhillips is an important milestone in pursuing our ambition to diversify our natural gas portfolio,” SEFE CCO Frederic Barnaud said.
“It demonstrates our commitment to securing energy supply for Europe,” he said.
SEFE’s LNG business
The German government took over SEFE, previously Gazprom Germania, in November 2022 saying the move is necessary to protect its energy security due to Russia’s ongoing war in Ukraine.
In May this year, SEFE delivered its first LNG cargo to Germany using its booked slot in the DET-operated Wilhelmshaven FSRU-based LNG terminal.
In March, state-owned producer Oman LNG and SEFE finalized their previously announced LNG supply deal for 0.4 million tonnes per annum of LNG between 2026 and 2029.
Prior to that, SEFE also signed a larger supply deal with UAE’s Adnoc for supplies from the proposed LNG terminal in Al Ruwais.
Under this deal, SEFE Marketing & Trading Singapore will buy 1 mtpa of LNG for a period of 15 years.
Last year, SEFE’s unit Wingas also signed a deal with US LNG exporter Venture Global to purchase 2.25 mtpa of LNG from the latter’s planned CP2 LNG project.
SEFE also previously booked long-term capacity at Hanseatic Energy Hub’s Stade LNG import terminal in Germany.
HEH took a final investment decision in March to build the LNG terminal that is set for launch in 2027.
Second German deal for ConocoPhillips
This is the second supply deal ConocoPhillips signed with German firms in the last two months.
ConocoPhillips and German state-owned energy firm Uniper recently signed a long-term natural gas supply deal.
The two firms have extended their long-term gas partnership for the supply of up to 10 billion cubic meters of natural gas over the next 10 years.
Uniper said the deal includes pipeline gas supplies and LNG.
ConocoPhillips expanding LNG business
ConocoPhillips is heavily investing to expand its LNG business.
Last year, ConocoPhillips signed a deal to book long-term capacity at the Dutch Gate terminal.
The 15-year throughput agreement for about 1.5 mtpa, or 2 bcm equivalent, begins in September 2031.
Before this deal, ConocoPhillips booked 2.8 mtpa of capacity at the onshore LNG import terminal in Brunsbüttel, Germany, which recently took a final investment decision.
Also, ConocoPhillips signed a deal in July to book long-term capacity at the Fluxys-operated Zeebrugge LNG import terminal in Belgium.
The capacity booking at the terminal in Zeebrugge will allow ConocoPhillips to import and regasify 0.75 mtpa of LNG for delivery in Belgium and throughout Europe starting in April 2027.
In addition to these capacity bookings, ConocoPhillips increased its stake in the Australia Pacific LNG export project in 2022 and purchased stakes in QatarEnergy’s giant North Field East (NFE) project and the North Field South (NFS) project.
On the Gulf Coast, ConocoPhillips secured 5 mtpa of offtake from the first phase of Sempra Infrastructure’s Port Arthur LNG project in Texas and took a 30 percent equity interest in the project.
Last year, ConocoPhillips also signed a deal with Mexico Pacific, the developer of the planned Saguaro Energia LNG export project, to buy 2.2 mtpa of LNG from the latter but this deal is pending FID.
It also has 0.2 mtpa of offtake for five years starting in 2025 from Sempra Infrastructure’s ECA Phase 1 in Mexico.
The company’s total offtake in North America is about 7.4 mtpa, pending the FID at Saguaro Energia LNG.
