State-owned QatarEnergy and UK-based Shell signed two long-term LNG sale and purchase deals for the supply of up to 3.5 million tons per annum of LNG from Qatar to the Netherlands.
Qatar’s energy minister and chief executive of QatarEnergy, Saad Sherida Al-Kaabi, and Wael Sawan, CEO of Shell, signed the SPAs during a ceremony in Doha, according to a statement by QatarEnergy issued on Wednesday.
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.
LNG giant Shell has capacity rights at the Gate terminal owned by Gasunie and Vopak.
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.
Last week, QatarEnergy also signed two deals with TotalEnergies for up to 3.5 million tons per annum and a period of 27 years. These supplies are intended for the Fos Cavaou LNG receiving terminal in southern France.
Europe’s energy security
Al-Kaabi welcomed the signing of these two agreements with Shell saying that they will “further enhance our decades-long relationship and strategic partnership in Qatar and around the world.”
“There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe,” he said.
Al-Kaabi added that 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.”
QatarEnergy to announce more LNG deals
QatarEnergy recently officially started building its North Field expansion project.
Sawan and the CEOs and senior executives of QatarEnergy’s other partners in the expansion project attended the event.
Besides Shell and TotalEnergies, QatarEnergy’s partners in the project are ConocoPhillips, ExxonMobil, Eni, Sinopec, and CNPC.
Prior to these deals, QatarEnergy signed huge LNG supply deals with China’s CNPC and Sinopec.
These deals are for 27 years and 4 mtpa of LNG.
QatarEnergy also signed a 15-year deal to supply LNG to Bangladesh’s state-owned Petrobangla, and it signed a 15-year deal with US energy firm ConocoPhillips to supply Germany with LNG.
The firm is expected to announce additional LNG supply deals by the end of this year.