Affiliates of QatarEnergy and Shell signed two long-term LNG sale and purchase agreements (SPAs) for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to the Netherlands.
A press release from QatarEnergy confirms that, in line with the SPAs, LNG will be delivered to the Gate LNG terminal in the port of Rotterdam starting in 2026 for a term of 27 years.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell that hold interests in Qatar's North Field East (NFE) and North Field South (NFS) expansion projects.
Saad Sherida Al-Kaabi, the minister of state for energy affairs, and Wael Sawan, the CEO of Shell, signed the agreements during a special event held in Doha.
Commenting on the agreements, Al-Kaabi said, 'We are delighted to sign these two long-term LNG sale and purchase agreements with Shell that will further enhance our decades-long relationship and strategic partnership in Qatar and around the world. There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe'.
“These agreements reaffirm Qatar’s commitment to helping meet Europe's energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities,' he added.
The North Field expansion project will raise Qatar's LNG production capacity from the current 77 MTPA to 126 MTPA by 2026.
By Pinar Aydinli Yadikar in Qatar
Anadolu Agency
energy@aa.com.tr