QP to supply LNG to Shell in China
Qatar Petroleum has signed a 10-year sales and purchase agreement with Shell to supply 1mn metric tons/year of LNG to China, with deliveries set to commence in January 2022, the company said on June 30.
The deliveries will come from Qatargas 1, QP's joint venture with TotalEnergies, ExxonMobil and Japanese companies Marubeni and Mitsui that operates 10mn mt/yr of LNG liquefaction capacity in Qatar. QP is set to become the 100% owner of Qatargas 1 at the start of next year, when its joint venture agreement with its partners expires.
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Qatari energy minister and QP CEO, Saad Sherida Al-Kaabi, noted the supplies would be delivered to Shell's end customers in China, "thereby further supplementing Qatar's contribution to meeting China's growing energy needs." With the deal's conclusion, Qatar will have long-term supply contracts covering 12mn mt/yr of LNG to China.