QatarEnergy signs LNG supply deal with Shell

QatarEnergy has signed two long-term agreements with Shell for the supply of up to 3.5mn tonnes/year of LNG from Qatar to the Netherlands, it said on October 18.

The LNG will be delivered to the Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years. 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% share in the 32mn tonnes/year NFE project and a 9.375% share in the 16mn tonnes/year NFS project.

This is the second long-term LNG supply deal that QatarEnergy has announced in the past week. Last week, QatarEnergy signed a similar deal with France's TotalEnergies to supply 3.5mn tonnes/year of LNG with deliveries expected to start in 2026 for a term of 27 years.

Qatar, the world's largest LNG exporter, held a groundbreaking ceremony on October 3 for the North Field expansion project, which will raise the country's LNG production capacity from 77mn tonnes/year to 126mn tonnes/year by 2026.