Qatar signs EU's second LNG supply deal beyond 2050

Spanish Market: Condensate, Crude oil, Natural gas
18/10/23

State-owned QatarEnergy (QE) and Shell have signed two 27-year supply agreements for up to 3.5mn t/yr of LNG, starting in 2026, making the Netherlands the second European country after France to purchase gas well beyond 2050.

The LNG "will be delivered to Gate LNG terminal located in the port of Rotterdam", QE said today.

Volumes will be sourced from the two joint ventures between QE and France's TotalEnergies that hold interests in Qatar's North Field East (NFE) and North field South (NFS) projects, according to QE.

QE on 11 October signed an identical contract with TotalEnergies.

It remains unclear, in both contracts, if there is a minimum delivery obligation to France. QE already has long-standing flexible supply arrangements into Europe with no minimum delivery obligation at Belgium's 7.2mn t/yr Zeebrugge and the UK's 14.8mn t/yr Isle of Grain and 15.6mn t/yr South Hook terminals. These give the firm something akin to a put option that it can use to deliver uncommitted LNG cargoes to Europe after meeting delivery obligations to customers elsewhere who have contractual flexibility to adjust their offtake.

Shell holds a 6.25pc stake at the 32mn t/yr NFE project and 9.375pc at the 16mn t/yr NFS project.

"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," Qatari energy minister and QE chief executive Saad al-Kaabi said.

The EU aims to be climate-neutral by 2050 — an economy with net zero greenhouse gas emissions. This objective is at the heart of the European Green Deal and in line with the EU's commitment to global climate action under the Paris Agreement.

Al-Kaabi said in January that the 48mn t/yr NFE and NFS projects will be sold out potentially by the end of this year, with buyers in Asia-Pacific aware that there is a pull from Europe — "2023 is going to be a very big year for Qatar," he said. "A lot of things are going to be announced."

By Bachar Halabi

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US Fed keeps rate unchanged, signals 2 cuts this year

19/03/25

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19/03/25

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Turkish lira at all-time low against dollar

19/03/25

Turkish lira at all-time low against dollar

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UK study sets out Grangemouth's post-refining future

19/03/25

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