Qatar Energy and Shell Sign Long-Term LNG Supply Agreements to Netherlands
Qatar Energy and Shell Sign Long-Term LNG Supply Agreements
Qatar Energy and Shell, two companies affiliated with Qatar Energy and Shell, have recently signed long-term sales and purchase agreements. These agreements aim to supply up to 3.5 million tons of liquefied natural gas (LNG) annually from Qatar to the Netherlands.
Supplying LNG to the Netherlands
The agreements specify that the gas will be delivered to the Gate LNG receiving terminal in the Dutch port of Rotterdam, starting from 2026. The supply will continue for a period of 27 years. This move strengthens the strategic partnership between Qatar Energy and Shell.
Joint Venture Companies
The LNG will be supplied by two joint venture companies, Qatar Energy and Shell, who have ownership shares in the North East Field and North South Field expansion projects.
Signing Ceremony and Comments
The signing ceremony took place in Doha, Qatar, with Saad bin Sherida Al Kaabi, Minister of State for Energy and Managing Director and CEO of Qatar Energy, and Wael Sawan, CEO of Shell, in attendance. Al Kaabi expressed his pleasure in signing these agreements, emphasizing the importance of natural gas in supporting the low-carbon energy transition and energy security globally.
Al Kaabi also emphasized Qatar’s commitment to fulfilling Europe’s energy needs and supporting its energy security. He highlighted the economic and environmental benefits of this partnership with Shell and expressed his enthusiasm for working together to achieve common goals.
Shell’s Involvement in LNG Expansion Projects
Shell holds a 6.25% stake in the North East Field project, which has a production capacity of 32 million tonnes per annum, and a 9.375% stake in the South North Field project, with a production capacity of 16 million tons per year.