Securing Energy for Europe (SEFE), the state-owned German gas company, has entered into a ten-year agreement with US-based ConocoPhillips for the supply of natural gas.

This deal is part of SEFE's strategy to ensure a stable fuel supply for Europe, especially after the geopolitical shifts following the onset of the Russia-Ukraine conflict in 2022.

Under the terms of the agreement, up to 9bcm of natural gas will be delivered to SEFE, with the first shipments having already been completed.

This agreement is crucial for the company, which requires approximately 20bcm of natural gas annually for its European customer portfolio.

In an interview last month, SEFE's CEO revealed that it has secured agreements with multiple global producers to maintain gas supplies to Germany and reduce dependence on a single supplier, reported Bloomberg.

SEFE CCO Frederic Barnaud said: “This agreement is an important milestone in pursuing our ambition to diversify our natural gas portfolio.

“It demonstrates our commitment to securing energy supply for Europe.”

SEFE was founded following Russia's invasion of Ukraine in 2022, after Germany decided to nationalise Gazprom PJSC's operations within the country.

SEFE is planning privatisation by 2028, and is actively expanding its supply base.

The company currently holds a market share of nearly one-eighth in Western Europe, and is also engaging with global liquefied natural gas producers and exploring pipeline gas supply options with countries such as Azerbaijan.

These initiatives are geared towards fortifying SEFE's energy portfolio and ensuring stability in the lead-up to its transition to private ownership.