(Bloomberg) -- ConocoPhillips is set to supply German utility Uniper SE with natural gas for the next 10 years, underpinning a 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 “significant contribution to energy supply security” in the region, Uniper said in a statement.
Under the agreement, ConocoPhillips will supply gas to Uniper “while leveraging its existing piped gas and growing LNG positions,” Uniper said.
For ConocoPhillips, the deal strengthens its energy business in Europe, a region that has since 2022 undergone a massive shift from dependence on Russian pipeline gas to securing other fuel sources such as liquefied natural gas or pipeline gas from outside suppliers.
“This agreement will further advance our growing LNG portfolio marketing efforts and help to ensure placement of vital gas supply into Europe,” said Khoa Dao, chief commercial officer for ConocoPhillips.
A long-term deal also signals Europe’s growing acceptance of the fossil fuel that’s used for heating, power generation and in industrial production.
The two companies already have a joint ammonia supply framework agreement with JERA Americas.
--With assistance from Ruth Liao.
©2024 Bloomberg L.P.
