QatarEnergy inks a 20-year contract to supply Shell with 18 mn tons of naphtha annually

QatarEnergy + Shell ink long term naphtha supply contract: State-owned QatarEnergy has signed a 20-year agreement to supply up to 18 mn tons of naphtha (a refined or partially refined petroleum fraction) annually to Shell’s Singapore-based International Eastern Trading Company starting April 2025, according to a statement. The financial details of the agreement have not been disclosed.

What they said: “Today’s signing further strengthens QatarEnergy’s relationship with Shell, which is not only a reliable naphtha off-taker but also a major counterpart and strategic partner. We look forward to building on our longstanding relationship with Shell and achieving greater mutual successes along the way,” Qatar’s State of Energy Affairs Minister Saad Sherida Al-Kaabi said in the statement.

Not QatarEnergy’s first time with Shell: QatarEnergy’s first five-year naphtha agreement with Shell was signed in 2019. The agreement secured a supply of 900k metric tons of full range naphtha and plant condensate per year starting April 2020.

QatarEnergy has been expanding its supply agreements with several partners, supported by Qatar’s North Field reservoir, which it shares with Iran, Reuters reports. QatarEnergy’s fleet is also undergoing an expansion to boost North Field’s production.

ICYMI- QatarEnergy inked a 15-year sale and purchase agreement in August with the Kuwait Petroleum Corporation, which will supply 3 mn tons per annum of LNG to Kuwait. The company also purchased six 271k cubic meter capacity QC-Max LNG vessels in September from China State Shipbuilding Corporation.