News:Middle East & Africa

Qatargas inks five-year LNG supply deal with Shell

Despite recent sanctions by neighbouring countries against Qatar, Shell has signed a new sale and purchase agreement (SPA) for LNG from Qatargas.

Qatargas said it had signed an agreement with Shell to deliver up to 1.1m tonnes of LNG a year for five years.

“Qatargas continues to win new business in an evolving market, and this SPA demonstrates Qatargas' ability and flexibility to capture new opportunities," said Saad Sherida Al-Kaabi, ceo of Qatar Petroleum and chairman of the board of Qatargas.

Khalid Bin Khalifa Al-Thani, ceo of Qatargas, said: “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."

The agreement starts in January 2019 and it is expected that the LNG will be delivered to either the Dragon LNG Terminal in the UK or the Gate LNG Terminal in the Netherlands. 

“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,” said Maarten Wetselaar, director of integrated gas at Shell.

Posted 19 June 2017

© Copyright 2017 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Marcus Hand

Editor, Seatrade Maritime News

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