Doha, Qatar – Qatar has agreed to supply three million tonnes of gas a year to China in a deal with London-headquartered energy giant Shell, 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 United States, 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.