State-owned Qatar Petroleum (QP) has signed a ten-year agreement with Shell to supply LNG to China.
Under the sale and purchase agreement (SPA), QP will supply one million tons per annum (MTPA) of LNG to various LNG terminals in China.
Qatar Petroleum president and CEO and Qatar Minister of State for Energy Affairs Saad Sherida Al-Kaabi said: “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.”
With the latest agreement, China will receive approximately 12 MPTA of LNG from Qatar under long-term SPAs.
QP plans to commence LNG deliveries from January 2022. It will supply from its Qatargas Liquefied Natural Gas (QG1) project.
OG1 is jointly owned by Qatar Petroleum (65%), ExxonMobil (10%), Total (10%), Mitsui (7.5%), and Marubeni (7.5%).
Earlier this year, Qatar Petroleum said it will become the sole owner of QG1, the holding company of an LNG project in Qatar, from 1 January 2022.
Upon the expiry of the relevant agreements on 31 December 2021, QP will not renew the QG1 joint venture.
Established in 1984, OG1 produces LNG and related products from Trains 1, 2 and 3. Each train has a production capacity of 3.3 million tonnes per annum (mtpa).
In February 2021, Qatar Petroleum announced the final investment decision (FID) for the $28.75bn North Field East project.
The 33mtpa LNG project is expected to increase Qatar’s LNG production capacity to 110mmtpa from 77mmtpa.
