LNG supply deals with European customers likely after summer: Qatar's minister

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QatarEnergy will sign liquefied natural gas (LNG) supply deals with European customers likely after the summer, HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi said on Thursday.

“Agreements with several European destinations... are very close to being finalised,” he said at a media event at the QatarEnergy headquarters on Thursday.

Replying to a question by Gulf Times, al-Kaabi said, “We are talking to many companies in different countries. We are in advanced discussions with some customers. If I put everything that we have on the table and assume that we are going to be successful in signing everything that we are negotiating today, a big portion of it will be going to Asia, the other will be going to Europe and we will be more than sold out as far as volumes of North Field East (NFE) and the North Field South (NFS) are concerned.”

QatarEnergy’s LNG trading arm, QatarEnergy Trading, yesterday entered into a long-term LNG Sale and Purchase Agreement (SPA) with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) to supply up to 1.8mn tonnes per year (MTPY) of LNG to Bangladesh for 15 years, starting in 2026.

The gas would come from the ongoing North Field expansion, which seeks to enhance the country's liquefied natural gas (LNG) production capacity from 77 MTPY to 126 MTPY by 2026 or 2027.

North Field expansion comprises the North Field East (NFE) and the North Field South (NFS) expansion projects and is the industry’s largest ever LNG project.

Al-Kaabi reiterated Qatar’s commitment to honouring its contracts and said, “Until now we have not defaulted even on one cargo. We will honour our contracts fully and it is very important for us as an LNG producer and exporter. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers".”

He noted, “Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5mn tonnes per year from Qatar to Bangladesh. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity.”