QatarEnergy and Guangdong ink long-term LNG supply deal

Qatar’s state-owned oil and gas company QatarEnergy and Chinese utility Guangdong Energy have entered into a long-term sale and purchase agreement (SPA) for LNG supply to China.

Illustration only; Courtesy of Guangdong Dapeng LNG
QatarEnergy and Guangdong ink long-term LNG supply deal
Illustration only; Courtesy of Guangdong Dapeng LNG

Today, QatarEnergy announced the news via social media. Specifically, its LNG producing affiliate Ras Laffan LNG signed this long-term SPA with Guangdong Energy.

Moreover, this deal is for the supply of one million tonnes of LNG per year to China. It will start in 2024 and last for a period of ten years.

Deliveries of LNG under the SPA will use Qatar’s fleet of Q-Flex and Q-Max LNG vessels. So, this will allow Guangdong Energy to receive LNG primarily at the Dapeng and Zhuhai LNG terminals.

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Saad Sherida Al-Kaabi, CEO of QatarEnergy, said: “We are pleased to enter into this long-term supply agreement with Guangdong Energy Group... This agreement further demonstrates our commitment to continue to be a trusted and reliable energy partner for (…) China.”

He also expressed his thanks to the CEO of Qatargas for this new long-term LNG supply agreement.

To remind, QatarEnergy started the North Field East Project in 2020 to expand its LNG production. The project is to increase the production capacity from 77 mtpa to 110 mtpa m in the first phase.

The second phase, called the North Field South Project, will further boost the country’s production capacity to 126 mtpa.

Recently, in order to meet the requirements for these projects, the company ordered four LNG carriers from Hudong-Zhonghua Shipbuilding.