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Qatargas, Shell ink LNG pact

Written by  Monday, 19 June 2017 20:42
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Qatargas has signed a sales agreement to sell 1.1 million tonne of liquefied natural gas (LNG) annually to Shell for five years, commencing January 2019.

Supply will be sourced from its Qatargas 4 project, which is a joint venture between Qatar Petroleum (70%) and Shell (30%).  

CEO of Qatargas Khalid Bin Khalifa Al-Thani said this deal provides Qatargas with access to Shell's gas sales portfolio in the UK and continental Europe, as well as the flexibility to manage LNG deliveries to a global client portfolio.

It is expected that the LNG will be delivered to either the Dragon LNG Terminal in the UK or the Gate LNG Terminal in the Netherlands.

This agreement comes after Qatargas inked a deal in March that reaffirms its commitment to supporting the development of an LNG hub in Poland.

The Qatari gas producer agreed to increase LNG volume currently shipped to Polish Oil and Gas Co. to two million tonnes per annum. The new arrangement will come into effect in January 2018 and run until June 2034. 

LNG will be supplied from the company's Qatargas 3 development - a joint venture between Qatar Petroleum (68.5%) ConocoPhillips (30%), and Mitsui & Co. (1.5%).

It will be delivered on board the Q-Flex LNG vessels to the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland.

Image: Qatargas 4 / Qatargas

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