Qatar Signs Agreement to Deliver 3 Million Tons of Liquefied Natural Gas to China

Qatar will supply China with 3 million tons of liquefied natural gas annually starting in 2025, under a long-term agreement with Shell, reinforcing its position in the Asian and global LNG market.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Qatar has announced the conclusion of a major agreement with China for the supply of liquefied natural gas (LNG), marking a new step in its strategy to strengthen energy relations with Asian markets. The partnership, signed in collaboration with Shell, provides for the delivery of 3 million tons of LNG annually starting in January 2025.

According to a statement from QatarEnergy, the emirate’s state-owned company, this agreement underscores their commitment to meeting the growing needs of international markets. “We are pleased to conclude this agreement with our partner Shell, enabling us to meet the demands of its customers in China and strengthen our contribution to global energy supply,” said Saad al-Kaabi, QatarEnergy’s Minister of Energy and CEO.

A Strategic Partnership in a Challenging Energy Context

Qatar, a key player in the global LNG market, occupies a leading position alongside the United States, Australia, and Russia. This agreement is part of a series of partnerships the emirate has signed with international partners. China, already one of the largest consumers of Qatari LNG, is further cementing its strategic energy ties with Doha through this partnership.

The growing demand for LNG in Asia is driven by the energy transition and the need to secure stable supplies, especially in a context where disruptions linked to the war in Ukraine have shaken global energy flows. European markets, initially supplied by Russia, have also increased their dependence on Qatari LNG.

A Model of Longevity and Trust

The exact duration of this agreement with Shell has not been disclosed, but QatarEnergy has previously signed similar contracts lasting 27 years with partners such as Sinopec, Total, and Petronet. These agreements reflect a long-term vision aimed at stabilizing the market and ensuring energy security for global consumers.

In 2022, Qatar signed its first major agreement with Sinopec to supply China over several decades, setting a precedent for similar partnerships. With this new agreement, Shell also strengthens its position in the Chinese market by benefiting from privileged access to Qatari gas.

An Expanding Asian Market

Asian markets, including China, Japan, and South Korea, represent major outlets for Qatari gas. China, in particular, is investing heavily in natural gas infrastructure to reduce its reliance on coal and meet its climate commitments. This new contract highlights the growing importance of LNG in China’s energy strategy.

Meanwhile, Qatari LNG exports to Europe have increased in recent years to compensate for reduced Russian deliveries, further diversifying Qatar’s gas destinations. This ability to adapt quickly to market fluctuations has strengthened Qatar’s strategic position on the global energy scene.

The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.
Africa Energy postpones submission of its environmental impact assessment for Block 11B/12B following a recent court ruling affecting offshore exploration authorisations in South Africa.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.