Shell Plc (SHEL)

[eFinanceMarkets]

Shell, Qatar Gas sign new five-year LNG deal

Qatar Gas signs a new agreement to deliver as much as to 1.1M metric tons/year of liquefied natural gas to Royal Dutch Shell (RDS.A, RDS.B) over a five-year period.

Qatar Gas says the agreement will begin in January 2019 and be supplied by the Qatargas 4 project, a joint venture between Qatar Petroleum (70%) and Shell (30%).

The LNG is expected to be delivered into either the Dragon LNG terminal in the U.K. or the Gate terminal in the Netherlands; Shell controls 50% of the 4.4M metric tons/year Dragon terminal and has offtake out of the Gate LNG terminal.