Qatar’s state-owned oil and gas company QatarEnergy has entered into a five-year crude oil supply agreement with Shell International Eastern Trading Company, Singapore (Shell).
Commencing in January 2024, the deal encompasses the supply of up to 18 million barrels annually of Qatar Land and Qatar Marine crude oils to Shell.
“We are delighted to sign our first ever five-year crude sales agreement. This agreement further strengthens QatarEnergy’s relationship with Shell, which is not only a reliable crude oil off-taker, but also a major customer and a strategic partner of QatarEnergy,” His Excellency Mr. Saad Sherida Al-Kaabi , the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, said.
The value of the deal was not disclosed.
This strategic move is driven by QatarEnergy’s strategy to forge enduring and strategic business relationships.
This deal represents a pragmatic acknowledgment that, despite the global push towards cleaner energy alternatives, the demand for conventional fossil fuels persists. That being said, it can be viewed as a transitional measure, providing stability for both entities while allowing them to collectively navigate the complex journey towards a more sustainable energy future.
The collaboration between QatarEnergy and Shell extends well beyond this landmark agreement, reflecting a history of joint investments in the energy sector within Qatar and across the globe. Notable ventures include contributions to QatarEnergy LNG projects, the Pearl GTL Plant, and various other investments.
Specifically, in October 2023, QatarEnergy and Shell, through their affiliates, signed two long-term LNG sale and purchase agreements for the supply of LNG from Qatar to the Netherlands.
Pursuant to the agreements, up to 3.5 million tons per annum (mtpa) of LNG will be delivered to the Gate LNG terminal in the port of Rotterdam starting in 2026 for a term of 27 years.
Moreover, in November, QatarEnergy signed a partnership agreement with China Petrochemical Corporation (Sinopec) for the North Field South (NFS) expansion project.
The two parties signed a long-term sales and purchase agreement (SPA) for the delivery of 3 million tons per annum (MTPA) of LNG from the NFS project to Sinopec’s receiving terminals in China over a span of 27 years.