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Wednesday, October 27, 2021

QP inks 15-year LNG sale with Taiwan’s CPC Corporation


Liquified natural gas supplier Qatar Petroleum has entered a deal with Taiwan’s CPC for the supply of 1.25 million tonnes per annum of LNG.

State-owned liquified natural gas (LNG) supplying giant Qatar Petroleum has entered into a 15-year LNG Sale and Purchase Agreement (SPA) with CPC Corporation, Taiwan (CPC).

The SPA stipulated that QP will supply 1.25 million tonnes per annum (MTPA) of LNG to the Taiwanese state-owned company.

The SPA was signed by Qatar’s Minister of State for Energy Affairs and the President and CEO of Qatar Petroleum Saad Sherida Al-Kaab, and the President and Acting Chairman of CPC Shun-Chin Lee.

“We are pleased to enter into this long term LNG SPA, which is another milestone in our relationship with CPC, which dates back to almost three decades. We look forward to commencing deliveries under this SPA and to continuing our supplies as a trusted and reliable global LNG provider,” said Al Kaabi.

The virtual signing ceremony was also attended by CEO of QatarGas Sheikh Khalid bin Khalifa Al Thani and senior officials from both sides.

As per the agreement, LNG deliveries will begin in January 2022 and will be delivered to CPC’s receiving LNG terminals.

CPC has received more than 63 million tonnes of LNG from Qatar since the first delivery in March 2006.

Read also: QP, TotalEnergies enter into three offshore exploration blocks in South Africa

QP has also recently penned a deal to supply an additional 1 million tonnes per year of LNG to China after signing a 10-year contract with British-Dutch multinational oil and gas giant Shell.

The deal means that Qatar will supply 12 million tonnes per year of LNG to China under existing long-term deals.

LNG deliveries to China will also start in January 2022 to various LNG terminals in China, which is set to become the world’s largest LNG importer in 2021.

QP is well on its way to return as the largest LNG producer by 2030.

In March, the state owned corporation signed a $1.9 billion LNG deal with Samsung C&T Corporation as part of Qatar’s $28.7 billion North Field Expansion project, the world’s largest LNG project.

The project is set to raise Qatar’s LNG production capacity from 77 million metric tonnes per year to 110 million metric tonnes per year by 2025.

QP also announced it would become the sole owner of QatarGas from next year.

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