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Qatar & Shell Sign 27-year European Gas Supply Agreement

October 18, 2023
Qatar
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Qatar has bolstered its long-term gas supplies to Europe with a 27-year gas supply agreement with the Netherlands. Qatar Energy announced on Wednesday that two companies affiliated with Qatar Energy and Shell had signed gas supply and purchase agreements in a deal similar to one reached with Total Energies last week.

Starting from 2026, Qatari liquefied natural gas (LNG) will be delivered from the North Field Expansion project to the Gate LNG terminal in the Dutch port of Rotterdam. Qatar Energy stated, “Quantities of LNG from the two joint ventures between Qatar Energy and Shell, which hold stakes in the North East and South Field Expansion projects in Qatar, will be supplied.”

This agreement follows a similar one signed by Qatar Energy and Total Energies last week, marking the largest and longest-reaching gas supply agreement for Qatari gas to Europe. The competition for securing LNG supplies has intensified since the beginning of the conflict in Ukraine, with Europe seeking substantial quantities to replace Russian gas previously delivered through pipelines, constituting nearly 40% of the continent’s imports.

Saad Al-Kaabi, Minister of State for Energy Affairs and Chairman of Qatar Energy, stated in the announcement, “These two agreements reaffirm Qatar’s commitment to contributing to Europe’s energy needs and supporting its energy security through an economically and environmentally advantageous source.”

Qatar is the world’s largest supplier of liquefied natural gas (LNG), and competition for securing LNG supplies has intensified as Europe seeks to diversify its sources and reduce dependence on Russian gas. With Qatar expanding its LNG production capabilities, it plays a pivotal role in the global energy landscape.

Tags: Qatar
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