Regional LNG: Qatargas, Shell sign new LNG agreement
Tuesday, June 20 2017 - 01:14 AM WIB
Leading LNG company Qatargas announced Monday the signing of a new sale and purchase agreement (SPA) with Shell. Under the terms of the agreement, Qatargas will deliver up to 1.1 million tons of Liquefied Natural Gas (LNG) per annum to Shell for five years.
Commencing in January 2019, the SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (Qatargas 4), a joint venture between Qatar Petroleum (70%) and Shell (30%). It is expected that the LNG will be delivered to either the Dragon LNG Terminal in the United Kingdom or the Gate LNG Terminal in the Netherlands.
?Qatargas continues to win new business in an evolving market, and this SPA demonstrates Qatargas' ability and flexibility to capture new opportunities," said Saad Sherida Al-Kaabi, President and CEO of Qatar Petroleum and Chairman of the Qatargas board of director, in a statement
Commenting on the new SPA, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, said: ?This deal provides Qatargas with access to Shell's gas sales portfolio in the United Kingdom and continental Europe, as well as the flexibility to manage LNG deliveries to our global client portfolio."
Maarten Wetselaar, Director of Integrated Gas at Shell, said: ?We are pleased to have signed this agreement, strengthening our relationship with Qatargas. Agreements like this support our ability to provide reliable, flexible LNG supply to our customers. We strongly believe natural gas has a vital role to play in providing secure and cleaner energy for decades to come."
Editing by Reiner Simanjuntak