2nd Dec 2024 09:18
(Alliance News) - Qatar has agreed to supply three million tonnes of gas a year to China in a deal with London-headquartered energy firm Shell PLC, the emirate's state energy company said on Monday.
The liquefied natural gas deliveries would begin in January as part of a "new long-term sale and purchase agreement", QatarEnergy said in a statement without specifying the duration of the deal.
"We are pleased to enter into this new long-term LNG SPA (sale and purchase agreement) with our trusted partner, Shell," said Energy Minister Saad al-Kaabi, who is also the chief executive of QatarEnergy.
"This agreement helps meet the requirements of Shell's end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide," he added.
Qatar is one of the world's top gas producers alongside the US, Australia and Russia.
Asian countries led by China, Japan and South Korea have been the main market for Qatari gas, but demand has also grown from European countries since Russia's war on Ukraine threw supplies into doubt.
In recent years, Qatar has inked other long-term LNG deals with France's Total, Shell, India's Petronet and Italy's Eni among others, many of them for 27 years in duration, an industry record when the first deal was made in 2022 with China's Sinopec.
Separately, the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani will arrive in the UK Monday for a two-day state visit hosted by King Charles III.
The state visit will begin Tuesday when the Qatari couple are greeted by heir to the throne Prince William and his wife Catherine, Princess of Wales, at their residence at Kensington Palace in west London.
The Qatari leader was educated in Britain where he attended leading private schools before graduating from the Sandhurst military academy.
Shell shares were 0.2% lower at 2,526.50 pence each on Monday morning in London.
source: AFP
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