Inspenet, October 20, 2023.
QatarEnergy (QE) and Shell have signed two liquefied natural gas (LNG) supply agreements covering a period of 27 years, with a volume of up to 3.5 million tonnes annually from 2026. This makes the Netherlands the second European country, after France, to make gas purchases beyond the year 2050.
The LNG will be delivered to the Gate LNG terminal, located at the port of Rotterdam, according to the statement issued by QE.
The LNG volumes will come from joint ventures between QE and TotalEnergies , which have interests in the Qatari North Field East (NFE) and North Field South (NFS) projects, as indicated by QE. It should be noted that on October 11, QE signed a similar contract with TotalEnergies.
In both agreements, it is not specified whether there is a minimum supply obligation to France. QatarEnergy has had flexible supply agreements in Europe for some time, which do not require a minimum guaranteed delivery. These agreements provide the company with a type of put option that allows it to ship uncommitted LNG cargoes to Europe after meeting its delivery obligations to customers elsewhere that have contractual flexibility to adjust their purchases.
It is important to highlight that Shell has a 6.25% interest in the NFE project, which has a capacity of 32 million tons per year, and a 9.375% interest in the NFS project, which has a capacity of 16 million tons per year.
For its part, the EU aims to achieve climate neutrality by 2050, which implies an economy that does not emit more greenhouse gases than it can absorb.
This objective is fundamental in the context of the European Green Deal and aligns with the EU’s commitment to contribute to global climate action as set out in the Paris Agreement.
Qatar’s position
Qatar’s Energy Minister and QatarEnergy CEO Saad al-Kaabi mentioned in January that the NFE and NFS projects, with a combined capacity of 48 million tonnes per year, could run out by the end of this year.
This has generated interest from buyers in the Asia-Pacific region, who are aware of the growing demand for liquefied natural gas in Europe. ” 2023 is going to be a very big year for Qatar ,” he said. ” Many things are going to be announced .”
Source: https://www.worldenergytrade.com/oil-gas/general/qatar-firma-el- Segundo-agrado-de-suministro-de-gnl-de-la-ue-mas-alla-de-2050
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