Qatar has signed two 27-year gas supply agreements with British company Shell, the Gulf nation’s state-owned energy company announced on Wednesday. Under these agreements, Qatar will supply 3.5 million tonnes of liquefied natural gas (LNG) per year to the British company. Shell is involved in the development of the giant Nord Field gas field in the Gulf, Qatar Energy said in a statement.
Strengthening international relations
Qatar’s Minister of Energy, Saad Al-Kaabi, said, “We are delighted to sign these two long-term agreements with Shell, which will further strengthen our relationship and strategic partnership in Qatar and around the world.” He also stressed that these agreements reaffirm Qatar’s commitment to help meet Europe’s demand and strengthen its energy security.
North Field expansion
Shell had already teamed up with QatarEnergy for a 9.4% stake in Qatar’s North Field South project in October of the previous year. LNG deliveries to Rotterdam are scheduled to begin in 2026. This move comes in the context of the search for solutions to replace Russian gas supplies to European countries, following Russia’s invasion of Ukraine the previous year.
A diversification strategy
Qatar plans to increase its LNG production by 60% or more, to 126 million tonnes per year by 2027, as part of the expansion of the North Field, the world’s largest natural gas field. Traditionally, the main market for Qatari gas has been in Asia, with countries such as China, Japan and South Korea.
Equivalent agreements
The agreement with Shell is equivalent in duration to that with French company TotalEnergies, announced earlier this month. Other industry giants, such as China National Petroleum Corporation and China’s Sinopec, have also signed similar agreements. The United States is also involved, with partnerships signed by ConocoPhillips and ExxonMobil for the development of North Field.
Qatar, a major player in the LNG market
Qatar is one of the world’s leading producers of LNG, alongside the USA, Australia and Russia. Qatar Energy estimates that the North Field contains around 10% of the world’s known natural gas reserves.
Qatar is strengthening its position as a gas supplier on the international stage by signing these long-term gas supply agreements. These partnerships are helping to meet Europe’s gas demand while enhancing energy security, consolidating Qatar’s position as a major player in the LNG market.
