QP signs pact with Shell to supply China with 1mpta LNG for ten years

Qatar Petroleum (QP) on Wednesday entered into a long-term Sale and Purchase Agreement (SPA) with Shell for the supply of 1 million tons per annum (MTPA) of LNG to the People's Republic of China for ten years. LNG deliveries will commence in January 2022 to various LNG terminals in China, QP said in a press statement Wednesday. Commenting on this occasion,  HE Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, said, “We are pleased to enter into this new LNG SPA with our trusted partner, Shell. I am especially delighted that this agreement will meet part of the demand of Shell’s end customers in China, thereby further supplementing Qatar’s contribution to meeting China's growing energy needs.” HE Al-Kaabi concluded his remarks by saying, “This SPA further highlights our ability to meet the requirements of our customers and partners across the world. I would like to take this opportunity to thank the management and staff of Shell for the successful conclusion of this SPA, which is another testament to our long and fruitful partnership. I would also like to thank Sheikh Khalid Khalifa Al Thani, the CEO of Qatargas, and his team for their valuable contributions to reinforce Qatar’s position in the LNG market, and meet the needs of our customers." Qatar Petroleum plans to supply the LNG volumes contracted under this agreement from its Qatargas 1 venture, which will become 100% owned by Qatar Petroleum as of January 1st 2022. China is considered a major customer for the State of Qatar and a strategic partner in the energy sector. With the conclusion of this agreement, China will be supplied with approximately 12mpta of LNG under long term SPAs from Qatar.