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Wednesday, October 27, 2021

Qatar Petroleum signs ten year LNG deal with China

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Qatar Petroleum (QP) enters a long-term LNG deal with China Petroleum & Chemical Corporation (Sinopec) for an annual supply of gas to the Asian country.

Qatar is set to supply gas to China, authorities confirmed, after a 10-year deal was signed between Qatar Petroleum (QP) with China Petroleum & Chemical Corporation (Sinopec).

The LNG Sale and Purchase Agreement (SPA) will see 2 million tonnes per year (MTPY) of LNG delivered to Sinopec’s  terminals in China starting from January 2022.

This will mark QP’s first long-term deal with the major Chinese LNG importer.

The deal demonstrates Qatar’s continued commitment to strengthening its grip on the future of the global gas market, meeting the growing energy demand of its customers globally.

“Our LNG relationship with China dates back to 2009, when we started supplying LNG through a host of LNG SPAs with a number of our valued Chinese partners, said Minister of State for Energy Affairs and President and CEO of QP Saad Sherida al-Kaabi.

“This SPA will further supplement Qatar’s contribution in meeting China’s growing energy needs and we look forward to commencing deliveries under the agreement,” al-Kaabi added.

The first delivery from Qatar to China was in 2009 and since then, the Gulf state has supplied more than 62 million tonnes of LNG to the east Asian country.

CEO of Qatargas, Sheikh Khalid bin Khalifa al- Thani said the landmark agreement comes as a boost to the existing relationship with Chinese customers

“As the World’s Premier LNG Company, Qatargas is committed to meeting the clean energy needs of customers around the globe who depend on reliable LNG deliveries,” Sheikh Khalid said.

Reas also: As renewables replace oil, is Qatar doing enough to diversify?

QP has ramped up efforts to solidify its position as a leading LNG supplier.

Earlier this month, the state-owned corporation signed a $1.9 billion-worth contract with Samsung C&T Corporation for the expansion of the LNG storage and loading facilities at the major North Field East [NFE] Project.

The deals are part of Qatar’s plan to return as the leading exporter of LNG by 203 and its move to sanction the $28.7 billion North Field Expansion project puts the country on track to do so, according to a report by Rystad Energy.

The Oslo-based international energy consultancy and research organisation said the North Field Expansion (NFE) will raise Qatar’s liquefaction capacity to 110 million tonnes per year (tpy) out of the global total of 600 million tonnes per year, or 18% of the world’s annual supply.

The project will likely trigger a rise in oil prices and energy projects worth about $100 billion in 2021, of which the Middle East is set to contribute almost 40%.

Currently, Australia tops the LNG producer chart with 88 million tonnes per year. However, that is set to change as Qatar and the US are slated to overtake Canberra to reach the top of the list.


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