QatarEnergy and ENOC solidify ties with a 10-year condensate supply agreement to boost energy relations between both nations.
QatarEnergy announced a decade-long condensate supply agreement with Dubai-based ENOC Group, an internationally recognised energy powerhouse, as diplomatic relations between the two Gulf states resume.
The contract, which includes the provision of 120 million barrels of condensate, was formally signed by both entities on Monday. The Gulf nation was represented by QatarEnergy, acting on behalf of Qatar Petroleum for the Sale of Petroleum Products Company Ltd. (QPSPP). Meanwhile, ENOC Supply & Trading LLC, an ENOC subsidiary, held the pen from the Emirati side.
Set to commence in July 2023, the pact underscores QatarEnergy’s strategic drive to establish direct sales with end-users and foster lasting business alliances and collaboration.
This deal forms part of a broader historical context. QatarEnergy and ENOC have been maintaining a solid partnership since 2008, and this agreement appears to be a natural progression of their mutually beneficial ties.
Mr. Saad Sherida Al-Kaabi, the nation’s minister of Energy Affairs and the President and CEO of QatarEnergy, reflected on this progression, highlighting the importance of this deal in strengthening relationships between both companies.
“We are pleased to sign this long-term condensate sale agreement, further strengthening QatarEnergy’s relationship with ENOC, which extends back to 2008. We look forward to building on the historic working relationship and the trust in Qatar’s condensate exports to help further the growth and development our partners hope to achieve,” he said in a press release.
Echoing Al-Kaabi’s sentiments, Saif Humaid Al Falasi, Group CEO at ENOC, expressed his gratification at the strengthened alliance, underscoring ENOC’s commitment to delivering exceptional value to its customers and stakeholders. He further acknowledged the crucial role ENOC plays in contributing to the UAE’s ongoing success through global governmental collaborations.
“We are honoured to sign this long-term agreement with QatarEnergy, to strengthen the cooperation and partnership between both organisations which reiterates our commitment to offering exceptional value to our customers and stakeholders,” the official said.
The pact not only cements ties between the two entities but also leaves room for future expansion. The contract terms allow for an increase in condensate volumes, anticipating additional exports from Qatar as the North Field East (NFE) and North Field South (NFS) expansion projects get underway.
The latest signing comes just weeks after the UAE and Qatar announced the reopening of embassies in the two countries, marking the final step to rapprochement to end the 2017 Gulf Cooperation Council crisis.
In 2017, the UAE joined Saudi Arabia, Bahrain, and Egypt in imposing an illegal air, land and sea blockade on Qatar while severing ties with the country.
At the time, the quartet accused Qatar of supporting terrorism, though Doha has consistently and vehemently denied those “baseless” allegations.
While the crisis effectively came to an end in 2021 with the signing of the Al-Ula Declaration in Saudi Arabia, ties between Qatar and the UAE have taken time to pick up pace.
Qatar’s foreign ministry said the decision to reopen the embassies was “based on the Al-Ula Agreement, and the keenness of the two countries to strengthen bilateral relations,” referencing the historic 2021 accord that ended the region’s worst rift.
“The two sides affirm that this step comes as an embodiment of the will of the leaderships of the two countries, and in consolidation of the path towards joint Arab action, in a way that achieves the aspirations of the two brotherly peoples,” the statement added.
