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Tuesday, October 26, 2021

Qatar-China ink major 15-year LNG deal


Qatar Petroleum has signed a deal with CNNOC to supply liquified natural gas to China for 15 years.

One of the world’s biggest liquefied natural gas (LNG) suppliers, Qatar Petroleum (QP), has signed a new deal to supply LNG to China for 15 years.

The agreement was signed with CNNOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation.

As per the new deal, Qatar will deliver 3.5 million tonnes of LNG per annum (MTPA) starting from January 2022. CNOOC is China’s top offshore oil and gas producer.

“We are pleased to further build upon our strong relationship with CNOOC with the signing of this new [agreement]. We are especially proud to continue to meet the People’s Republic of China’s growing need for cleaner energy that LNG provides,” said Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi.

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In March, QP signed a 10-year deal was signed with China Petroleum & Chemical Corporation (Sinopec).

The LNG Sale and Purchase Agreement (SPA) stipulated that Qatar would send 2 MTPA of LNG delivered to Sinopec’s terminals in China starting from January 2022. This was QP’s first long-term deal with the major Chinese LNG importer.

Qatar’s history with CNOOC started in September 2009, when the first LNG cargo was delivered to the Chinese firm.

As of August, Qatar has delivered 715 LNG cargoes to China, 270 cargoes of which were carrying more than 24 million tonnes of LNG to CNOOC.

Qatar has been inking major LNG supply deals to Asia.

In July, South Korea announced it signed a 20-year deal with Qatar to purchase an additional 2 MTPA of LNG starting from 2025. Under the agreement, South Korea will be able to import 6.1 million tonnes of LNG from Qatar annually.

Earlier that month, Qatar’s state-owned LNG supplier entered a 15-year LNG Sale and Purchase Agreement (SPA) with CPC Corporation, Taiwan (CPC).

The SPA stipulated that QP would supply 1.25 MTPA of LNG to the Taiwanese state-owned company.

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