QatarEnergy and China bolster LNG ties with new deals
State-owned oil and gas giant QatarEnergy has signed definitive agreements with China National Petroleum Corporation (CNPC) for the long-term supply of LNG to China and partnership in the North Field East (NFE) LNG expansion project.
The LNG sales and purchase agreement (SPA) between the two parties will see QatarEnergy deliver 4 million tons per annum (mtpa) of LNG from the NFE project to CNPC’s receiving terminals in China over a span of 27 years.
Pursuant to the second agreement announced on 20 June, QatarEnergy will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8 mtpa.
With this transfer, CNPC will become a partner in the NFE project. This will not affect the participating interests of any of the other shareholders in the project, the parties said.
The deal new deals are similar to the agreements that QatarEnergy signed with China Petroleum & Chemical Corporation (Sinopec) for the supply of LNG and partnership in the NFE expansion project.
- Qatar and China sign 27-year LNG supply deal
- QatarEnergy transferring 5% of its stake in NFE to China’s Sinopec
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, commented: “We are pleased to embark on this partnership with CNPC and to build on the excellent relations between the People’s Republic of China and the State of Qatar. These agreements demonstrate our unwavering commitment to our customers and partners and to our shared ambition for a sustainable future facilitated by a cleaner and more eco-friendly energy source that would catalyze substantial socio-economic development.”
On his part, Dai Houliang, the Chairman of CNPC, said: “Our collaboration over the NFE project represents a major achievement and excellent practice of both CNPC and QatarEnergy in delivering on the strategic consensus of the leaders of our countries. It is another milestone in forming a strategic synergy between China’s “Belt and Road” Initiative and Qatar’s National Vision 2030.
“It lays a solid foundation for the energy cooperation between the two sides in the next three decades. From this brand-new starting point, CNPC will continue to actively discuss with QatarEnergy all-round cooperation across the hydrocarbon industry chain and other areas like green and low carbon energies, so as to build a stable, long-term, and multi-dimensional strategic partnership.”
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