Qatar Petroleum and Shell sign a ten-year LNG supply agreement

2021-12-07 09:19:27 By : Mr. Chris Liu

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The state-owned Qatar Petroleum Company (QP) and Shell signed a ten-year agreement to supply liquefied natural gas to China.

According to the sale and purchase agreement (SPA), QP will supply 1 million tons of LNG (MTPA) to multiple LNG terminals in China each year.

Saad Sherida Kabi, President and CEO of Qatar Petroleum and Minister of State for Energy Affairs of Qatar, said: “I am particularly pleased that this agreement will meet some of the needs of Shell’s end customers in China, thus further complementing Qatar’s needs Contribution to China’s growing demand. Energy demand."

According to the latest agreement, China will obtain approximately 12 MPTA of LNG from Qatar under the long-term SPA.

QP plans to start delivering LNG in January 2022. It will supply from its Qatar Natural Gas LNG (QG1) project.

OG1 is jointly owned by Qatar Petroleum (65%), Exxon Mobil (10%), Total (10%), Mitsui (7.5%) and Marubeni (7.5%).

Earlier this year, Qatar Petroleum stated that from January 1, 2022, it will become the sole owner of QG1, the holding company of the Qatar LNG project.

After the relevant agreement expires on December 31, 2021, QP will not renew the QG1 joint venture.

OG1 was established in 1984 and produces LNG and related products from 1, 2 and 3 trains. The production capacity of each train is 3.3 million tons per year (mtpa).

In February 2021, Qatar Petroleum announced the final investment decision (FID) for the North Field East project valued at US$28.75 billion.

The 33 metric ton LNG project is expected to increase Qatar's LNG production capacity from 77 metric tons/year to 110 metric tons/year.

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