https://arab.news/5xvyg
RIYADH: Qatar’s state-owned energy firm has entered into a 27-year sales and purchase agreement with China Petrochemical Corp., also known as Sinopec, to supply 3 million tons of liquefied natural gas annually.
According to a press statement, QatarEnergy and Sinopec will collaborate on the second phase of the Gulf state’s North Field South expansion project.
As part of the partnership agreement, QatarEnergy will transfer a 5 percent stake to Sinopec in a joint venture company that owns the equivalent of 6 million tons per annum of LNG production capacity in the NFS project, the press statement added.
This marks the third long-term LNG supply deal between Qatari and Chinese firms. The two companies previously signed 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, said: “Qatar has firmly supported the role of natural gas as a central component of any energy mix on the road to a realistic energy transition. We are providing the world with the cleanest hydrocarbon source of energy, which enjoys both economic and environmental qualities to support sustainable growth and a better future.”
He added: “In fact, by 2029, about 40 percent 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.”
In October, QatarEnergy also signed a 27-year LNG supply agreement with Eni to deliver 1 million tons of LNG annually to Italy.
In the same month, the state-owned energy firm inked another deal with French firm TotalEnergies to supply up to 3.5 million tons per annum of LNG to France for 27 years.
In a press statement, QatarEnergy revealed that LNG volumes to France will be sourced through their two joint ventures with TotalEnergies, which hold interests in the Gulf nation’s northeastern oil fields.
In July, QatarEnergy reported a net profit of 154.6 billion Qatari riyals ($42.47 billion) in 2022, a 58 percent rise compared to 2021, driven by increased demand for LNG following Russia’s invasion of Ukraine.