Qatar will sign more LNG supply agreements with Europe and Asia

Mondo International Updated on 2024-02-20

QatarEnergy, a state-owned giant in one of the world's largest LNG exporters, is expected to soon announce new LNG** deals with European and Asian buyers, and the company is expanding its world's largest LNG pipeline capacity.

QatarEnergy CEO Sherida Al-Kaabi said at a news conference on Monday, quoted by Bloomberg, as saying QatarEnergy could also sign additional agreements to welcome more partners into the joint venture that will expand production capacity in the North Field.

Qatar's Minister of State for Energy Affairs Al Kaabi said Qatar's LNG production would not be threatened by disruptions to shipping in the Red Sea. The executive noted that most of Qatar's LNG shipments are heading east to Asia, while European customers will have longer delivery times.

Last month, QatarEnergy halted LNG shipments through the Red Sea. Late last year and early this year, QatarEnergy signed several major LNG** agreements with major European and Asian companies, including with Shell, TotalEnergies, Eni and Sinopec. QatarEnergy announced its latest such agreement with India's Petronet earlier this month, a 20-year LNG sale and purchase agreement aimed at delivering 7.5 million tonnes of LNG per annum to India.

In October 2023, the Qatari national energy giant signed another 27-year agreement to deliver goods in Italy for Eni Group from 2026 to transport LNG to Europe. Previously, the company entered into similar agreements with Shell and Totalenergies to the Netherlands and France**LNG, respectively.

Shell, TotalEnergies and Eni, as well as ConocoPhillips and Exxonmobil, all hold minority stakes in joint ventures to develop multiple LNG production lines at the North Field East (NFE) and North Field South (NFS) expansion projects.

Last year, Al Kaabi said, "By 2029, when all our projects are up and running, 40% of new LNG will come from QatarEnergy." (Compiled by Xiao Chen).

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