Qatargas signs new LNG supply agreement with Shell

Qatargas has signed a new sale and purchase agreement (SPA) to deliver up to 1.1 million tonnes of liquefied natural gas (LNG) per annum to Shell for a period of five years.

Financial terms of the transaction were not disclosed.

Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “Qatargas continues to win new business in an evolving market, and this SPA demonstrates Qatargas' ability and flexibility to capture new opportunities."

Scheduled to begin in January 2019, the SPA provides for the supply of LNG from Qatar Liquefied Gas Company (4) (Qatargas 4), which is a joint venture between Qatar Petroleum and Shell on a 70:30 basis.

According to Qatargas, the LNG will be delivered to either the Dragon LNG Terminal in the UK or the Gate LNG Terminal in the Netherlands.

Qatargas CEO Khalid Bin Khalifa Al-Thani said: “This deal provides Qatargas with access to Shell's gas sales portfolio in the UK and continental Europe, as well as the flexibility to manage LNG deliveries to our global client portfolio."

Earlier this month, Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments signed an agreement to develop LNG marine fuelling infrastructure at strategic shipping locations worldwide.

Established in 1984, Qatargas has an annual LNG production capacity of 42 million tonnes per annum (mta).

It has seven LNG trains, each with a production capacity of 7.8mta.

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Image: The LNG supply agreement will start in January 2019. Photo: courtesy of Qatargas Operating Company.