Cut off by its biggest gas supplier Russia since the end of August, Germany has been desperately looking for alternatives to mitigate its energy crisis.
Qatar will supply up to 2 million tonnes of liquefied natural gas to Germany under a 15-year deal set to begin in 2026.
The agreement, signed on Tuesday, comes as the European economic powerhouse scrambles to replace Russian gas supplies that have been cut during the ongoing war in Ukraine.
The deal involves both Qatar Energy, the nation’s state-run firm, and ConocoPhillips, which has stakes in Qatar's offshore natural gas field in the Persian Gulf that it shares with Iran.
Under the agreement, Qatar will be supplying energy to Germany through an under-construction terminal at Brunsbuettel.
As European countries have supported Ukraine after the Russian onslaught in February, Moscow has slashed supplies of natural gas used to heat homes, generate electricity and power the industry.
That has created an energy crisis that is fueling inflation and increasing pressure on companies as prices have risen.
Germany, which got more than half its gas from Russia before the war, hasn’t received any gas from Russia since the end of August.
The country is building five liquefied natural gas terminals as a key part of its plan to replace Russian supplies, and the first are expected to go into service shortly.
Much of Germany’s current gas supply comes from or via Norway, the Netherlands and Belgium.
Germany's drive to prevent a short-term energy crunch also includes temporarily reactivating old oil- and coal-fired power stations.
The country is also extending the life of the country's last three nuclear power plants, which were supposed to be switched off at the end of this year, until mid-April.