Qatargas, the World's Premier Liquefied Natural Gas Company, yesterday announced the signing of a new Sale and Purchase Agreement (SPA) with Shell. Under the terms of the agreement, Qatargas will deliver up to 1.1 million tonnes of Liquefied Natural Gas (LNG) per annum to Shell for five years.
Mr. Saad Sherida Al-Kaabi, President and Chief Executive Officer of Qatar Petroleum, and Chairman of the Qatargas Board of Directors, said: “We are pleased with the conclusion of this agreement, which further strengthens our relationship with Shell - one of the largest energy traders in the world."
Mr. Al-Kaabi added: “Qatargas continues to win new business in an evolving market, and this SPA demonstrates Qatargas' ability and flexibility to capture new opportunities."
Commenting on the new SPA, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, said: “Qatargas is delighted to conclude this new SPA with a valued partner and we look forward to working even closer with Shell in the years ahead. This deal provides Qatargas with access to Shell's gas sales portfolio in the United Kingdom and continental Europe, as well as the flexibility to manage LNG deliveries to our global client portfolio."
Maarten Wetselaar, Director of Integrated Gas at Shell, said: “We are pleased to have signed this agreement, strengthening our relationship with Qatargas. Agreements like this support our ability to provide reliable, flexible LNG supply to our customers. We strongly believe natural gas has a vital role to play in providing secure and cleaner energy for decades to come."
Commencing in January 2019, the SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (“Qatargas 4"), a joint venture between Qatar Petroleum (70%) and Shell (30%). It is expected that the LNG will be delivered to either the Dragon LNG Terminal in the United Kingdom or the Gate LNG Terminal in the Netherlands.