QatarEnergy will supply 3mt of LNG per year as part of the deal. Credit: T. Schneider/Shutterstock.

QatarEnergy has signed a long-term agreement with Shell to supply LNG to China.

Set to commence in January 2025, the deal will see the delivery of 3mt of LNG per year.

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This deal highlights the rising LNG demand in China, the world’s top importer, with QatarEnergy and Shell committing to meet its energy needs.

Industry insiders suggest that the LNG volumes will be integrated into Shell’s supply pool for its portfolio in China, according to a report by Reuters.

The report stated that China imported a record 71mt of LNG in 2023, demonstrating a robust appetite for the super-chilled fuel.

Shell predicts that by 2040, the global LNG market will expand by approximately 50% from 2023 levels as Asian economies continue to grow and as natural gas, the least polluting fossil fuel, increasingly replaces coal in power generation, the report added.

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Shell’s strong LNG sales have been a boon for the company, with third-quarter profits reaching $6bn (£4.73bn), surpassing forecasts by 12%.

Qatar ranks as the third-largest LNG exporter globally after the US and Australia.

In the past two years, QatarEnergy has secured a series of 27-year contracts to supply Chinese buyers with new gas from the North Field, affirming its strategic focus on the Asian market.

Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “We are pleased to enter into this new long-term LNG SPA [sale and purchase agreement] with our trusted partner, Shell. This agreement helps meet the requirements of Shell’s end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide.”