Qatar inks LNG supply deal with the Netherlands

DOHA, October 20, 2023 – QatarEnergy has signed a 27-year sales and purchase agreement with Shell to supply up to 3.5 million tonnes per year of LNG to the Netherlands, the Qatari NOC announced on Wednesday.

The gas will be delivered to the Gate LNG Terminal located in the port of Rotterdam beginning in 2026.

LNG volumes will be sourced from the North Field East and North Field South projects, of which Shell holds a 6.25% stake and a 9.375% stake respectively.

“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,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and president and CEO of QatarEnergy.

“These agreements reaffirm Qatar’s commitment to help meet Europe’s energy demands and bolster its energy security with a source known for its superior economic and environmental qualities.”

Cost of the contract was not disclosed.

Earlier in October, QatarEnergy signed a similar deal with TotalEnergies to export gas to France.

Qatar expects to raise LNG production capacity through its two-phase expansion plan from 77 million tonnes per year to 126 million tonnes per year by 2027.

Qatar’s Minister of State for Energy Affairs recently said the country is on the path to take on 40% of global LNG output by 2029.

Qatar’s North Field is located in the northeast of the country’s peninsula. It is the world’s largest gas field and contains around 10% of the globe’s known gas reserves.

QatarEnergy held the ground-breaking ceremony for its giant North Field expansion project earlier in October.

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