QatarEnergy has signed a 27-year long-term liquefied natural gas sale and purchase agreement with supermajor Shell for the supply of up to 3.5 million tonnes per annum (tpa) of LNG from Qatar to the Netherlands.

European players have signed multiple LNG deals this year with Middle East giants in the United Arab Emirates, Qatar and Oman, aimed at bolstering long-term energy security as the war in Ukraine has disrupted European pipeline gas supplies.

The Qatari state giant confirmed the gas supply deal on Wednesday, saying: “The LNG will be delivered to Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years.”

QatarEnergy noted that as a part of the most recent gas deal, 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.”

Qatar is expanding its LNG production capacity to 126 million tpa by 2026, from the existing 77 million tpa level, through the NFE and NFS projects.

Saad Sherida Al Kaabi, the chief executive of QatarEnergy, said the “two long-term LNG sale and purchase agreements with Shell” will further enhance their decades-long relationship and strategic partnership.

“There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting the energy security of customers across the globe,” he said.

Shell’s partnership in the North Field LNG expansion project involves a 6.25% share in the 32 million tpa NFE project and a 9.375% share in the 16 million tpa NFS project.

TotalEnergies LNG deal
French supermajor TotalEnergies also recently entered two long-term LNG gas sale and purchase agreements with QatarEnergy in a deal designed to strengthen France’s energy security for years to come, Upstream reported.

Under the agreements, Doha will supply up to 3.5 million tpa of LNG from the massive North Field production expansion project.

The LNG will be delivered to the Fos Cavaou receiving terminal in southern France, with deliveries expected to start in 2026 for a term of 27 years.

Earlier this year, the Qatari state giant signed a deal worth 14.2 billion riyals ($3.9 billion) for the construction of at least 17 liquefied natural gas carriers to expand on the largest shipbuilding programme ever launched in the sector.

Source: online

BDST: 1325 HRS, OCT 18, 2023 
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