QatarEnergy, Shell ink long-term deal to supply LNG to China

According to a statement by QatarEnergy on Monday, LNG deliveries under the SPA will start in January 2025.

QatarEnergy did not provide further details regarding the deal.

The company said that the agreement highlights the continued growth of China’s LNG market, which is projected to be the largest globally.

Also, this SPA marks the 11th LNG supply contract between QatarEnergy and Shell, Qatar’s energy minister and QatarEnergy’s CEO, Saad Sherida Al-Kaabi, said in the statement.

“This agreement helps meet the requirements of Shell’s end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide,” he said.

Last year, QatarEnergy and Shell signed two long-term LNG sale and purchase deals to supply up to 3.5 million tons per annum of LNG from Qatar to the Netherlands.

Under the SPAs, LNG will be delivered to the Dutch Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years.

Moreover, the LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell that hold interests in Qatar’s North Field East (NFE) and North field South (NFS) expansion projects.

Shell’s partnership in the North Field LNG expansion projects is made up of a 6.25 percent share in the 32 mtpa NFE project and a 9.375 percent share in the 16 mtpa NFS project.

Together, NFE and NFS form the wider North Field expansion project to increase LNG production from the North Field, adding 48 mtpa to Qatar’s export capacity and bringing it to 126 mtpa.

In February this year, QatarEnergy also announced the North Field West project which will add 16 mtpa of LNG to the overall expansion of the North Field.