Despite being a key player in international LNG exportation, Qatar will seek to diversify its local economy in 2024.
In a QatarEnergy first, a five-year deal has been inked with Shell in Singapore.
The state-owned petroleum, oil and natural gas company announced on Thursday that as part of the deal, 18 million barrels of Qatar Land and Qatar Marine crude will be supplied per annum to Singapore’s Shell International Eastern Trading Company.
The deal will come into effect in January 2024.
In a statement on this monumental agreement, Saad Sherida Al Kaabi, Qatar’s Energy Affairs Minister and QatarEnergy’s President and CEO said the company was delighted at the onset of this five-year venture.
“This agreement further strengthens QatarEnergy’s relationship with Shell, which is not only a reliable crude oil off-taker, but also a major customer and a strategic partner of QatarEnergy,” he added.
This move solidifies QatarEnergy as a key player in the international liquid natural gas exportation industry.
October of this year also saw the petrochemical giant ink a deal with TotalEnergies, to supply France with 3.5 million tonnes for 27 years, starting in 2026, according to Forbes Middle East.
Forbes ME also reported that a 27-year supply deal was also struck with Italy’s Eni oil company.
As highlighted in Qatar’s 2024 general budget, however, the state will seek to diversify its economy in the coming years.
After the announcement of Qatar’s Amir, Sheikh Tamim bin Hamad Al Thani, approving next year’s budget on December 20, it was revealed by Qatar News Agency that the cost per barrel of oil will decrease from $65 to $60 instead.
The Minister of Finance, Ali bin Ahmed Al Kuwari said that in line with the goals of Qatar National Vision 2030, the general budget will focus on the nation’s health and education sectors, with 20% of the total budget being allocated for both sectors.
“In addition to the goals related to diversifying the local economy and enhancing competitiveness, allocations for the communications and information technology sector have doubled compared to 2023,” Al Kuwari added.