QatarEnergy, Shell in China deal

QatarEnergy and Shell have entered into a new long-term sale and purchase agreement (SPA) for the supply of three million tons per annum (MTPA) of liquefied natural gas (LNG) to China.

LNG deliveries under the SPA will commence in January 2025, underscoring the commitment of both entities to meeting the world’s growing energy demands. The agreement also highlights the continued growth of China’s LNG market, which is projected to be the largest globally.

“We are pleased to enter into this new long-term LNG SPA with our trusted partner, Shell,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy. “This agreement helps meet the requirements of Shell’s end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide.”

Shell has stated global demand for LNG is estimated to rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China, South Asian and South-east Asian countries.