Qatar: QatarEnergy has inked a substantial 27-year gas supply agreement with China Petrochemical Corp., commonly known as Sinopec. The deal will see Qatar supply an annual volume of 3 million tons of liquefied natural gas (LNG) to China.
This strategic partnership will also involve a collaboration on the second phase of Qatar’s North Field South (NFS) expansion project. As per the agreement, QatarEnergy will transfer a 5% stake to Sinopec in a joint venture company that owns an equivalent of 6 million tons per annum of LNG production capacity within the NFS project.
This marks the third long-term LNG supply deal between Qatari and Chinese firms, following a 10-year LNG purchase and sales agreement in 2021 and a 27-year contract in 2022.
Qatar’s Minister of State for Energy Affairs, Sherida Al-Kaabi, expressed the nation’s commitment to natural gas as a cornerstone of a sustainable energy mix and a path to a greener future. He stated, “By 2029, about 40% of all new LNG supplies will be provided by Qatar. Therefore, we believe a stronger relationship between the world’s largest LNG producer and the world’s largest energy consumer is a natural development of the realities shaping the energy map today.”
Moreover, QatarEnergy has been actively expanding its LNG partnerships with other nations. In October, they signed a 27-year LNG supply agreement with Eni to deliver 1 million tons of LNG annually to Italy. They also struck a 27-year deal with French firm TotalEnergies to supply 3.5 million tons of LNG annually to France.
Notably, QatarEnergy reported robust financial performance in 2022, with a net profit of 154.6 billion Qatari riyals ($42.47 billion), reflecting a 58% increase compared to the previous year. This profit increase was linked to rising LNG demand following Russia’s invasion of Ukraine, highlighting Qatar’s expanding global energy role.