QatarEnergy has signed a long-term LNG supply deal with Shell, with deliveries destined for China, the Qatari gas heavyweight announced on Monday.
The deal will see Qatar supply 3 million tonnes per year (tpy) of LNG, commencing in January. The duration was not specified.
In a statement, QatarEnergy hailed its longstanding partnership with Shell, with whom it has now sealed 11 LNG supply agreements. The companies’ strategic partnership also includes several shared investments in the energy industry in Qatar and globally, including the various QatarEnergy LNG projects and the Pearl GTL plant, among others. In October, the pair signed a 20-year naphtha supply deal.
Shell has forecast a bright future for LNG trading, projecting that demand will double by 2040, as China shifts from coal to gas and Asian markets increase supplies to support expanding economies.
Global trade in LNG reached 404 million tonnes in 2023.
China ranks as the top LNG importer worldwide. Its 2024 imports totalled 97.8 bcm, according to the Energy Institute.
In February, QatarEnergy announced plans to expand production in the North Field, the world’s largest known gas reservoir, and increase the country’s LNG production capacity by at least 16 million tpy. The move is in addition to a 49-million-tpy expansion project already underway, and would bring North Field LNG output to 142 million tpy by 2030.
Souce: From theenergyyear.com