Two energy giants, Qatar’s state-owned QatarEnergy and UK-headquartered Shell, have inked a new long-term sale and purchase agreement (SPA) to deliver liquefied natural gas (LNG) to China.
The delivery of three million tons per annum (mtpa) of LNG is scheduled to start in January 2025. According to the two majors, the agreement with the country bearing the title of the 2023 largest LNG importer in the world highlights their commitment to meeting the world’s growing energy demands.
“This SPA marks the 11th LNG supply contract between us, serving as a testament to our enduring partnership. It underlines our consistent ability to meet the diverse requirements of our customers and partners globally. I extend my appreciation to Shell’s management and working teams for the successful conclusion of this SPA,” noted Saad Sherida Al-Kaabi , Qatar’s Minister of State for Energy Affairs, and the President and CEO of QatarEnergy.
Last year, Shell and QatarEnergy signed two long-term LNG deals to deliver up to 3.5 mtpa of LNG from Qatar to the Netherlands’ Gate LNG terminal in the port of Rotterdam for a term of 27 years.
The two giants are also collaborating on the North Field LNG expansion project together with partners TotalEnergies, ExxonMobil, ConocoPhillips, Eni, Sinopec, CNPC, and, as of June 2024 , CPC Corporation.
Last month at COP29, Shell joined forces with TotalEnergies, Equinor, and BP, pledging $500 million to help ensure access to affordable and sustainable energy for all. The funds are expected to be invested in solutions such as solar home systems, mini/metro grids, and clean cooking solutions, among others.