Home World Qatar Inks 27-Year Gas Deal with Shell to Aid Europe’s Energy Needs

Qatar Inks 27-Year Gas Deal with Shell to Aid Europe’s Energy Needs

Qatar Inks 27-Year Gas Deal with Shell to Aid Europe's Energy Needs
Qatar Inks 27-Year Gas Deal with Shell to Aid Europe's Energy Needs
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Qatar has recently signed a significant gas supply agreement with British energy giant Shell, aiming to support Europe’s demand for natural gas amid shifts in global supply dynamics. Under this deal, QatarEnergy will provide Shell with 3.5 million tonnes of gas annually over a period of 27 years.

This long-term agreement signifies the continuation of the strong partnership between Qatar and Shell and reinforces Qatar’s commitment to meeting Europe’s energy requirements. The deal is part of Shell’s involvement in Qatar’s North Field gas expansion project, one of the world’s largest gas fields that extends into Iranian territory.

This announcement follows Europe’s efforts to diversify its sources of natural gas, particularly in response to disruptions caused by Russia’s actions in Ukraine. Qatar, being one of the world’s top liquefied natural gas (LNG) producers, is well-positioned to contribute to Europe’s energy security.

Shell’s partnership with QatarEnergy began with its investment in the North Field South project in October last year, where they acquired a 9.4 percent stake. This marked the second phase in the expansion of the massive gas field. In July of the same year, Shell secured a 6.25 percent share in the initial expansion phase, North Field East.

Deliveries of LNG to Rotterdam under this new agreement are expected to commence in 2026. Qatar’s North Field expansion will significantly boost its LNG production, targeting a 60 percent increase to 126 million tonnes annually by 2027.

This gas deal between Qatar and Shell mirrors a similar 27-year agreement recently established with France’s TotalEnergies for natural gas supply. Such long-term partnerships demonstrate a commitment to stability and reliability in the energy sector.

Qatar, known for holding approximately 10 percent of the world’s known natural gas reserves, remains a crucial player in the global energy landscape. The North Field expansion is set to enhance Qatar’s role as a key supplier of natural gas, not only to Asia but also to Europe, further diversifying global energy supply chains.

In the liquefied gas industry, deals of this length are considered benchmarks, highlighting the significance and stability of these partnerships in a rapidly changing energy market. With various international players involved in Qatar’s expansion plans, it is clear that the country’s role in the global energy market is poised to grow substantially.

Qatar’s willingness to collaborate with leading global energy companies underlines the importance of international cooperation to ensure a steady and secure energy supply for nations around the world.

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