QatarEnergy and Shell Sign Long-Term Condensate Supply Agreement

Qatar’s state-owned oil & gas giant, QatarEnergy, has recently made headlines by signing a groundbreaking long-term condensate supply agreement with Shell International Eastern Trading Company (SIETCO), a subsidiary of the UK-based energy major, Shell.

The agreement, inked by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and the President and CEO of QatarEnergy, and Wael Sawan, the CEO of Shell, outlines a deal that will see QatarEnergy deliver up to 285 million barrels of condensate to Shell over a 25-year period, commencing in July 2025.

Al-Kaabi expressed his enthusiasm about the deal, stating, “We are delighted to sign QatarEnergy’s first 25-year condensate sales agreement, the largest and longest duration condensate agreement to date. This agreement is important for being signed with our strategic partner, Shell, with whom we have recently signed a 20-year naphtha sales agreement. These long-term agreements provide stability and certainty and help deliver more value to our customer Shell.”

QatarEnergy and Shell have a history of collaboration, with joint investments in various energy projects both in Qatar and globally, including QatarEnergy LNG projects and the Pearl GTL Plant.

Meanwhile, Shell has recently announced its decision to divest from its operated offshore assets in Colombia. Although the company has not provided an official statement regarding this move, its former Colombian partner, Ecopetrol, suggests that strategic reasons and global portfolio management considerations are behind Shell’s decision.