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Qatargas to deliver up to 1.1 million tpy of LNG to Shell

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LNG Industry,

Reuters are reporting that Qatargas has announced that it has signed an agreement with Shell for the delivery of up to 1.1 million tpy of LNG for five years.

The agreement will start in January 2019 and will be for the supply of LNG from Qatar Liquefied Gas Company Limited, a joint venture between Qatar Petroleum which holds 70% and Shell with the remaining 30%.

The LNG will be delivered to either the Dragon LNG Terminal in Britain or the Gate LNG Terminal in the Netherlands.

Qatar faces competition from Australian and US producers. Supply deals into Europe offer a valuable option as Asia's gas-consuming economies rein in new deals in light of a growing supply overhang.

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