06/12  Closing Prices / revised 06/13/2024 07:25 GMT 06/12 OPEC Basket  $83.10   +$0.74 cents  06/12 Mexico Basket (MME) $73.29  +$0.66  cents  | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 06/12 NYMEX WTI Texas Intermediate July CLN24 $78.50  +$0.50 cents  | 06/12 ICE Brent August  BRNQ24    $82.60  +$0.68 cents  | 06/12 NYMEX Gasoline June RBN24 $2.39  -0.6%  |  06/12 NYMEX  Heating Oil July  RBN 24    $2.44  +0.8% | 06/12 Natural Gas July NGN24  $3.04   -2.7%  | 06/07 Active U.S. Rig Count (Oil & Gas)   594  -6  | 06/13 USD/MXN Mexican Peso   18.7374  (data live)  | 06/13 EUR/USD     1.0809 (data live)  | 06/13 US/Bs. (Bolivar)   $36.44970000 ( data BCV)

Shell Agrees to Buy Gas From Qatar for Netherlands Past 2050 – Bloomberg

shell logo
Shell logo

Adveith Nair and Stephen Stapczynski, Bloomberg News

EnergiesNet.com 10 18 2023

Shell Plc agreed to buy liquefied natural gas from Qatar for 27 years to the Netherlands, marking the Gulf nation’s second major contract to supply fossil fuel to Europe beyond 2050 despite the bloc’s green goals.

Starting in 2026, QatarEnergy will deliver as much as 3.5 million tons of LNG a year to Rotterdam’s Gate import terminal for 27 years under two deals, the Middle Eastern company said in a statement on Wednesday. That comes a week after the producer signed a similar contract with France’s TotalEnergies SE, and indicates that more deals could be on the horizon.

European oil majors are moving to sign some of the longest and biggest LNG supply deals as the region prepares for its second winter without the Russian pipeline gas it relied on for more than half a century. The contracts also come as the Netherlands seeks to meet a target to zero out emissions by 2050.

European firms had resisted signing decades-long deals preferred by Qatar in order to hit the region’s pollution reduction goals. The shift illustrates how the contracts have become more attractive after Russia’s invasion of Ukraine upended energy markets and prompted European nations to prioritize security of supply over green targets.

“These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security,” said Saad Sherida Al-Kaabi, Qatar’s energy minister. Qatar — which vies with the US and Australia as the world’s top LNG supplier — tends to link its contracts to oil, with little or no destination flexibility.

Qatar is rushing to find customers after investing tens of billions of dollars to increase output 64% by 2027. Shell last year bought a share in the project.

While other shareholders in the two-field expansion — including Exxon Mobil Corp. and Eni SpA — have yet to announce LNG purchase agreements, they may potentially ink similar deals as Qatar seeks customers for the extra volume.

Including the Shell contract, Qatar has so far committed about 18.8 million tons a year of that additional LNG capacity. Still, that just accounts for about 40% of the extra planned volume.

The so-called North Field East expansion is slated for 32 million tons per year, while the extension dubbed North Field South will bring another 16 million tons a year. For comparison, about 372 million tons of LNG was shipped in 2021.

bloomberg.com 10 18 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top