QatarEnergy and Shell strike 27-year LNG deal

(Sharecast News) - Energy giants Shell and QatarEnergy have struck a deal to supply the Netherlands with liquefied natural gas, it was announced on Wednesday. The companies have agreed two 27-year sale and purchase agreements, which will see up to 3.5m tons per annum of LNG sent to the Netherlands.

The gas, which will be delivered to Rotterdam's LNG terminal, will be sourced from two parts of Qatar's massive North Field Expansion project, North Field East and North Field South.

Shell has a 6.25% stake in North Field East and a 9.375% holding in North Field South.

Saad Sherida Al-Kaabi, minister of state for energy affairs and chief executive of state-controlled QatarEnergy, said: "There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe.

"These agreements reaffirm Qatar's commitment to help meeting Europe's energy demands.

"We look forward to work closely with our partner Shell in delivering on this shared endeavour."

The deal mirrors a similar one announced last week by QatarEnergy and France's TotalEnergies.

Qatar is currently expanding the massive North Field, the world's biggest natural gas reservoir, and expects to raise liquefaction capacity from 77m to 126m tons per year by 2027.

Gas is expected to start arriving in Rotterdam in 2026.