QatarEnergy and Shell ink China LNG supply agreement

QatarEnergy and Shell have entered into a new long-term sale and purchase agreement for the supply of 3m tonnes of LNG per annum to China.

The LNG deliveries under the agreement will commence in January 2025, underscoring the commitment of both entities to meeting the world's growing energy demands, they said.

The agreement highlights the continued growth of China’s LNG market. In 2023, China overtook Japan as the world's largest importer of LNG and is projected to extend its lead as Japan diversifies its energy sources away from LNG. China's LNG imports were a record high for September and October 2024, bringing its storage capacity close to full in November, according the US Energy Information Administration (EIA).

In 2023, the China's leading sources of LNG imports were Australia with 34% of total LNG imports, Qatar with 23%, Russia with 11%, and Malaysia with 10%, according data compiled by EIA.

Commenting on the announcement, HE Minister of State for Energy Affairs and the president and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi said: "We are pleased to enter into this new long-term LNG sale and purchase agreement with our trusted partner, Shell.

"This agreement helps meet the requirements of Shell's end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide."

Related:Do you want our LNG or not? QatarEnergy CEO asks EU

The latest sale and purchase agreement marks the 11th LNG supply contract between the two parties.