France and Qatar "unlock" new deal, EU has "abundant" gas reserves

On October 11, QatarEnergy - Qatar's state-owned energy company - announced that Doha has agreed to supply natural gas to French energy group TotalEnergies for 27 years.

Qatar signs 27-year gas supply deal with France. (Source: Reuters)

Specifically, Qatar will supply 3.5 million tons of gas per year under this agreement.

Qatari Energy Minister Saad al-Kaabi stated: “The new agreement we have signed with our partner TotalEnergies demonstrates our continued commitment to the European market in general and the French market in particular, thereby contributing to ensuring France's energy security.”

Total signed a $1.5 billion deal with QatarEnergy last September, giving the company a 9.3% stake in Qatar's North Field South project, the second phase of the ramp-up.

Previously, in June 2022, the French energy giant became the first partner in the first ramp-up phase of the North Field East mine project and invested more than $2 billion to take a 25% stake.

Gas deliveries to southern France are expected to begin in 2026.

* Figures from the European Gas Network Operators Association (GIE) show that the reserve capacity of gas storage facilities in most European Union (EU) member countries has been almost fully utilized.

According to data updated as of October 9 on GIE's AGSI platform, gas storage reserves across the bloc have reached 1,103.19 TWh (terawatt-hours), equivalent to 97.01% of total design capacity.

Germany is at the top with gas inventory of 190.24 TWh, accounting for 97.22% of the national capacity, followed by Italy (190.24 TWh, 97.22%), the Netherlands (137.68 TWh, 96.68%), and France (128.33 TWh, 95.82%).

Previously, in June 2022, member states agreed to introduce binding regulations on gas storage with the goal of filling at least 90% of storage facilities by November 1 each year, thereby optimizing the EU's preparedness during peak consumption months.

The EU identifies the gas storage system as key to ensuring the bloc's security of supply, meeting about one-third of the EU's gas demand in winter.

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