State-owned oil and gas giant Qatar Petroleum has entered into a ten-year deal with Shell for the supply of one million tonnes per anum (mpta) of LNG to China.
The new sale and purchase agreement (SPA) between Qatar Petroleum and Shell was signed on 30 June.
Liquid natural gas deliveries to various LNG terminals in China will start in January 2022.
The LNG under this agreement is to be supplied from Qatargas 1 venture, which will become 100 per cent owned by Qatar Petroleum as of January 2022 .
China, seen as a major customer for Qatar and a strategic partner in the energy sector, is to be supplied with approximately 12 mpta of LNG under long-term SPAs from Qatar.
Saad Sherida Al-Kaabi , Qatar’s energy minister and CEO of QP, said: “I am especially delighted that this agreement will meet part of the demand of Shell’s end customers in China, thereby further supplementing Qatar’s contribution to meeting China’s growing energy needs.”