Qatargas, Shell ink 5-year LNG supply deal

Al Samriya at the Dutch Gate terminal (Image courtesy of Qatargas)

Qatargas, the world’s largest LNG producer, signed a new deal to supply liquefied natural gas to the Hague-based LNG giant Shell.

Under the deal, Qatargas will deliver up to 1.1 million tonnes of the chilled fuel per annum to Shell for five years.

Starting in January 2019, the fuel will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell.

It is expected that the LNG will be delivered to either the Dragon LNG terminal in the United Kingdom or the Dutch Gate LNG terminal in the Port of Rotterdam, according to a Qatargas statement.

The new LNG deal is the second Shell signed with Qatar this month following the LNG bunkering agreement with Qatar Petroleum.

“This deal provides Qatargas with access to Shell’s gas sales portfolio in the United Kingdom and continental Europe, as well as the flexibility to manage LNG deliveries to our global client portfolio,” said Khalid Bin Khalifa Al-Thani, Chief Executive of Qatargas.

Maarten Wetselaar, Director of Integrated Gas at Shell, said that this accord strengthens the company’s relationship with Qatargas.

“Agreements like this support our ability to provide reliable, flexible LNG supply to our customers. We strongly believe natural gas has a vital role to play in providing secure and cleaner energy for decades to come,” Wetselaar added.

 

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