QatarEnergy And Shell Seal 27-Year LNG Supply Pacts, Delivering Up To 3.5 MTPA To The Netherlands

Shell PLC SHEL inked two long-term LNG sale and purchase agreements with affiliates of QatarEnergy for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to the Netherlands.

Following the development, the LNG will be delivered to the Gate LNG terminal in the port of Rotterdam starting in 2026 for 27 years.

The deal was signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Wael Sawan, the CEO of Shell.

The LNG volumes will originate from two joint ventures involving QatarEnergy and Shell, which have stakes in Qatar's North Field East (NFE) and North Field South (NFS) expansion projects.

The agreement is reportedly the second such deal with a European buyer in a week, as the Gulf state competes with the United States to help Europe replace lost Russian supplies, Reuters said in a news report.

Shell's latest agreement is similar to a TotalEnergies' TTE deal last week with QatarEnergy to supply France. 

Both are Qatar's biggest and longest gas supply deals with Europe, the report adds.

Shell's partnership in the North Field LNG Expansion Projects is made up of a 6.25% share in the 32 MTPA NFE project and a 9.375% share in the 16 MTPA NFS project.

Price Action: SHEL shares are trading lower by 0.81% to $67.93 on the last check Thursday.