(Bloomberg) -- ConocoPhillips is set to supply German utility Uniper SE with natural gas for the next 10 years, underlining the key role the fuel still plays in Europe.
The supply of as much as 10 billion cubic meters (363 billion cubic feet) of gas in key northwest European markets marks a “significant contribution” to energy security in the region, Uniper said in a statement. The deal starts Oct. 1 and includes piped fuel well as liquefied natural gas.
For ConocoPhillips, the agreement strengthens its energy business in Europe, a region that has since 2022 undergone a massive shift away from Russian supplies. Uniper — once Germany’s biggest buyer of gas from Moscow — now gets the fuel from a range of sources, including on the global LNG market.
The long-term deal also signals Europe’s growing acceptance that the fossil fuel — used in heating, power generation and industrial production — will remain a core part of the energy mix for years to come, despite growth in renewables.
ConocoPhillips and Uniper are already partners, signing an ammonia supply framework agreement with JERA Americas last year.
Financial terms of the natural gas deal weren’t disclosed.
--With assistance from Ruth Liao.
(Updates with start date in second paragraph.)
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