Commencing in January 2019, the SPA provides for the supply of LNG from Qatargas 4, a joint venture between Qatar Petroleum (70%) and Shell (30%). It is expected that the LNG will be delivered to either the Dragon LNG Terminal in the United Kingdom or the Gate LNG Terminal in the Netherlands.
Qatargas chairman, Saad Sherida al-Kaabi, also QP president and chief executive officer said, “We are pleased with the conclusion of this agreement, which further strengthens our relationship with Shell - one of the largest energy traders in the world.”
“Qatargas continues to win new business in an evolving market and this SPA demonstrates Qatargas’ ability and flexibility to capture new opportunities,” al-Kaabi added.
On the new SPA, Qatargas chief executive officer Sheikh Khalid bin Khalifa al-Thani said, “Qatargas is delighted to conclude this new SPA with a valued partner and we look forward to working even closer with Shell in the years ahead. 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.”
Shell director (Integrated Gas) Maarten Wetselaar said, “We are pleased to have signed this agreement, strengthening our 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.”
Established in 1984, Qatargas pioneered the liquefied natural gas industry in Qatar and today is the largest producer of LNG in the world with an annual production capacity of 42mn tonnes per year from its world-class facilities at the Ras Laffan Industrial City.
Since the first production in 1996, Qatargas has successfully delivered cargoes to some 28 countries and is committed to meeting the world’s demand for safe, reliable and clean energy. Through its operational excellence, Qatargas is adding value to its production chain, contributing to the Qatari economy and Qatar’s National Vision to ensure efficient energy supplies for the country, creating new markets and contributing to the local community.
In addition to the LNG facilities, Qatargas operates the Jetty Boil-Off Gas facility, the two Laffan Refineries (among the largest condensate refineries in the world), and the Ras Laffan Terminal on behalf of all participants.
Qatargas vessels loading LNG at Ras Laffan Port
Qatargas has signed a new sale and purchase agreement (SPA) with Shell, under which the world’s premier liquefied natural gas company will deliver up to 1.1mn tonnes of LNG a year to Shell for five years.
