Tuesday, July 14, 2020

Shell, Qatargas Sign LNG Deal for Kuwait

February 11, 2020

Image: Qatargas

The world’s largest liquefied natural gas (LNG) producer Qatargas has signed a new, long-term LNG sale and purchase agreement (SPA) with Shell to deliver 1 million tons per annum of LNG to Kuwait, commencing this year.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers."

Al-Kaabi said: "I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to continuing to work together to put LNG at the forefront of the world's drive towards cleaner and more sustainable energy sources."

Al-Kaabi added, “This new SPA also further underlines Qatargas' position as the market leader in LNG and demonstrates the Company's distinguished track-record of providing reliable LNG to the global market place and its continued ability to capture opportunities in a highly competitive environment."

Commenting on the new SPA, Khalid bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said, “Qatargas is delighted to conclude this new SPA with Shell. We believe this agreement provides a win-win solution for both companies and deepens the relationship with a valued partner and shareholder. Qatargas is committed to meeting the clean energy needs of customers who depend upon reliable, flexible LNG deliveries."

The SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited 4 (Qatargas 4), a joint venture between Qatar Petroleum (70%) and Shell (30%).

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