A Sales and Purchase Agreement (SPA) has been signed between Qatar Petroleum (QP) and Shell for the supply of 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to the People’s Republic of China for ten years.
LNG terminals in China will begin receiving deliveries of LNG in January 2022.
Speaking about the deal, His excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, said, “We are pleased to enter into this new LNG SPA with our trusted partner, Shell.”
“I am especially delighted that this agreement will meet part of the demand of Shell’s end customers in China, thereby further supplementing Qatar’s contribution to meeting China’s growing energy needs.”
The Minister also mentioned that the SPA highlights Qatar Petroleum’s ability to meet the requirements of their customers and partners across the world.
Continuing, he thanked the staff involved, saying, “I would like to take this opportunity to thank the management and staff of Shell for the successful conclusions of this SPA, which is another testament to our long and fruitful partnership.”
“I would also like to thank Sheikh Khalid Khalifa Al Thani, the CEO of Qatargas, and his team of their valuable contributions to reinforce Qatar’s position in the LNG market, and meet the needs of our customers.”
QP’s Qatargas1 venture will be supplying the LNG contracted under this agreement. Qatargas1 is due to become solely owned by QP as of January 1st, 2022.
As a strategic partner of Qatar within the energy sector and a major customer for the State of Qatar, the conclusion of this SPA will see China supplied with approximately 12 MPTA of LNG under long terms SPAs from Qatar.