In a significant move, Qatar has extended its long-term gas supply to Europe by securing a substantial deal with the Netherlands. The agreement entails providing 3.5 million metric tons of liquefied natural gas (LNG) annually for an impressive 27-year duration.
This development is the result of two distinct LNG sale and purchase agreements, officially signed between QatarEnergy and Shell (SHEL.L). Notably, this deal closely mirrors a similar agreement reached with TotalEnergies just last week.
Starting in 2026, the massive North Field LNG production expansion project will dispatch Qatari LNG to the Gate LNG terminal at the Port of Rotterdam.
Regarding the source of LNG volumes, QatarEnergy clarified, “The LNG volumes will originate from two joint ventures between QatarEnergy and Shell, which hold interests in Qatar’s North Field East (NFE) and North Field South (NFS) expansion projects.” Specifically, Shell maintains a 6.25% stake in the North Field East project and a 9.375% share in the North Field South project.
This deal follows the footsteps of an identical arrangement between QatarEnergy and TotalEnergies last week, previously Qatar’s most extensive and enduring gas supply agreement with Europe.
So far, Asia has outpaced Europe in securing long-term sales and purchase agreements with Qatar. These agreements are tied to Qatar’s two-phase expansion plan, set to elevate its liquefaction capacity from 77 million metric tons to an impressive 126 million metric tons annually by 2027.
Over the past year, QatarEnergy has inked agreements to supply LNG from this expansion to various Asian buyers, including China, in a clear demonstration of the growing global demand for LNG.
As the world’s leading LNG exporter, Qatar’s role in the global energy landscape has become even more crucial, particularly amid the ongoing conflict in Ukraine. Europe, in particular, seeks to replace Russian pipeline gas, which once constituted nearly 40% of the continent’s gas imports.
QatarEnergy Chief Saad al-Kaabi emphasized the significance of these agreements, stating, “These agreements reaffirm Qatar’s commitment to meeting Europe’s energy demands and enhancing its energy security, utilizing a source renowned for its superior economic and environmental qualities.”
