The agreement is the largest and longest duration condensate deal to date.
QatarEnergy is set to provide Shell with up to 285 million barrels of condensate for 25 years starting from July under a new agreement signed between the two entities in Doha on Wednesday.
The Qatari company announced the agreement in a statement, noting the signing took place between QatarEnergy and the Singapore-based Shell International Eastern Trading Company—a wholly-owned subsidiary of London-listed Shell.
The signing took place between Qatar’s Minister of State for Energy Affairs, Saad Al-Kaabi, and Shell’s CEO, Wael Sawan, according to the statement.
“We are delighted to sign QatarEnergy’s first 25-year condensate sales agreement, the largest and longest duration condensate agreement to date,” Al-Kaabi, who is also the President and CEO of QatarEnergy, said in the statement.
“These long-term agreements provide stability and certainty and help deliver more value to our customer Shell,” he added.
Meanwhile, last October, QatarEnergy entered a 20-year naphtha supply agreement with Shell that came into effect in April. Naphtha is derived from the distillation of crude oil and falls into different categories, though the generic term refers to a wide range of liquid mixtures of hydrocarbons.
The agreement, the largest of its kind, stipulated the supply of up to 18 million tonnes of naphtha. Al-Kaabi noted at the time that the agreement was also the second of its kind with Shell since 2019.
QatarEnergy and Shell then entered a separate long-term sale and purchase agreement last December for the supply of three mtpa (million tonnes per annum) of liquified natural gas (LNG) to China. The agreement marked the 11th LNG deal between the two companies.
The Gulf state is currently ramping up its LNG production with its multi-billion North Field Expansion project, the largest of its kind. The initial North Field East and the North Field South phase are set to increase LNG production from 77 mtpa to 126 mtpa by 2026.
Additionally, the North Field West project, which was unveiled in February 2024, will raise production to 142 mtpa by 2030, boosting output by 85 percent and strengthening Qatar’s economy.
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