Qatar And Shell Sign 27-Year Deal To Supply LNG To The Netherlands
Under the sale and purchase agreements, Qatar and Shell will deliver up to 3.5 million tons per year of LNG to the Gate LNG terminal in the port of Rotterdam, the Qatari state-owned firm said on Wednesday.
Shell is a minority partner in some of Qatar’s huge expansion projects. The UK-based supermajor holds a 6.25% share in the North Field East (NFE) and a 9.375% share in the North Field South (NFS) expansion projects.
“These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities,” said Saad Sherida Al-Kaabi, the Qatari Minister of State for Energy Affairs, who is also president and CEO of QatarEnergy.
The deal with Shell, the world’s top LNG trader, comes a week after QatarEnergy and TotalEnergies signed long-term LNG agreements under which Qatar will supply up to 3.5 million tons per year of LNG to France for 27 years beginning in 2026.
TotalEnergies, another major LNG trader, is a minority partner in Qatar’s huge LNG expansion projects NFE and NFS.
Last week’s deal with TotalEnergies was the first 27-year deal for QatarEnergy to supply LNG to Europe, an agreement that follows similar 27-year deals with Chinese firm Sinopec and China National Petroleum Corporation (CNPC).
Earlier this month, Qatar broke ground for the world’s largest LNG project, the North Field expansion project, which will boost the tiny Gulf country’s export capacity by 48 million tons per annum (mmtpa) by 2027.
In July this year, Al-Kaabi said that “40% of all the new LNG that will come to the market by 2029, when all our projects are up and running, is going to be from QatarEnergy.”
By Tsvetana Paraskova for Oilprice.com
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