Qatargas to deliver up to 1.1 MMt of LNG per year to Shell
DUBAI (Reuters) — State-owned Qatargas said on Saturday it had signed an agreement with Shell for the delivery of up to 1.1 MMt of LNG per year for 5 yr.
The agreement will start in January 2019 and will be for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (Qatargas 4), a JV between Qatar Petroleum which holds 70 percent 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, Qatargas said in a statement, which gave no value for the deal.
Qatar, the world's biggest exporter of LNG, 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.
The Shell agreement also comes as the worst rift in years among some of the most powerful states in the Arab world continues to simmer.
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar this month, accusing it of supporting terrorism, a charge which Doha denies.
Qatargas has said its LNG supply to the world's largest LNG importer Japan would not be affected by the economic, diplomatic and transport boycott.
Reporting by Maha El Dahan; Editing by Adrian Croft
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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