Shell PLC (LSE:SHEL, NYSE:SHEL) has struck a deal with Qatar that will see the Gulf state supply gas to the Netherlands for the next 27 years.
Agreements for its North Field gas project will see Qatar supply 3.5 million tonnes of gas a year.
Saad al-Kaabi, Qatar’s energy minister, said: “These agreements reaffirm Qatar’s commitment to help meet Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities.”
Earlier this month, Qatar announced a similar deal with Total to supply gas to France and elsewhere.
Through an expansion of North Field, Qatar plans to raise its output of liquified natural gas (LNG) by almost two-thirds in 2027.
European suppliers are looking for alternative sources to replace Russian gas that up until the war with Ukraine had been the mainstay of Europe's usage.
Shares in Shell rose 0.4% to 2,784p.