ALBAWABA - QatarEnergy, the state-owned energy giant, has entered a long-term sales and purchase agreement with Shell to supply liquefied natural gas (LNG) to China, according to Reuters.
Announced Monday, the agreement guarantees Shell would receive three million metric tons of LNG annually from QatarEnergy beginning in January 2025.
The partnership highlights the expansion of China's LNG market, which maintains its stronghold as the largest in the world. After reaching a record high of around 79 million metric tons in 2021, China imported 71 million metric tons of LNG in 2023, Reuters reports citing customs data.
Saad Sherida Al-Kaabi, the CEO of QatarEnergy and the country's Minister of State for Energy Affairs, applauded the deal, highlighting how it would support Qatar in satisfying the demands of its Chinese customers while bolstering its contributions to the global LNG market.
According to analytics company Kpler, Qatar has shipped 73 million metric tons of LNG so far this year, making it the third-largest LNG exporter in the world behind the US and Australia. With its natural gas resources, coupled with such strategic partnerships, bolstering its position as a leading energy supplier.
The agreement is the latest in a string of similar long-term LNG contracts that QatarEnergy has secured with other significant energy players, including India's Petronet, Italy's Eni, and TotalEnergies.
“This SPA marks the 11th LNG supply contract between us, serving as a testament to our enduring partnership. It underlines our consistent ability to meet the diverse requirements of our customers and partners globally,” Al-Kaabi added.
