SEATTLE (Oil Monster): The U.S.-based oil giant ConocoPhillips and the state-owned German gas firm Securing Oil for Europe (SEFE) announced a ten-year agreement towards supply of natural gas.
It is anticipated that the deal to supply up to 9 billion cubic meters (bcm) of natural gas will help Europe guarantee the energy security of the region. The first cargo have reportedly already been delivered through various trading hubs across the Europe. It must be noted that ConocoPhillips sources gas from Norwegian production and LNG imports.
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Following the geopolitical difficulties that arose from the war between Russia and Ukraine, SEFE had already announced its plan to guarantee a steady energy supply to Europe. In order to guarantee gas supplies to Germany and lessen reliance on a single supply, the business recently declared that it has signed deals with other producers.
Frederic Barnaud, CCO of SEFE, commented on the milestone deal, saying it will support the company's goal of diversifying its natural gas holdings. It demonstrates unequivocally the company's dedication to the security of Europe's energy supply, he added.
By the way, SEFE needs about 20 bcm of natural gas annually for its portfolio throughout Europe. The company currently holds nearly one-eighth share of Western Europe gas market. Additionally, it is currently exploring possibilities of gas supply through pipelines with Azerbaijan.
