LNG giant QatarEnergy said it has entered into a 15-year deal to supply LNG to China’s S&T International.
Under the sales and purchase agreement, QatarEnergy would deliver one million tons per year of LNG to S&T International Natural Gas Trading starting in late 2022, according to a statement on Wednesday.
QatarEnergy said its LNG producing affiliate, Qatar Liquified Gas Company Limited (2) or Qatargas 2, had signed the deal.
LNG deliveries under the new agreement would utilize Qatar’s fleet of conventional, Q-Flex but also Q-Max LNG vessels allowing S&T to receive the LNG quantities primarily at the Tangshan receiving terminal, it said.
S&T International Natural Gas Trading is a unit of China Suntien Green Energy which is building an LNG import terminal at Caofeidian in Tangshan city.
“We are pleased to welcome S&T into our family of long-term LNG customers and we are excited to work with them to help fulfil their long-term LNG requirements,” Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said.
Nine LNG deals
This new deal follows a contract QatarEnergy revealed earlier this week with Chinese state-owned utility Guangdong Energy.
It also marks the ninth long-term deal QatarEnergy has signed since February this year. This includes a deal with China’s CNOOC, Shell, and Sinopec.
These new LNG supply contracts come after QatarEnergy announced a final investment decision on its $28.75 billion North Field East project earlier this year.
Under the project, QatarEnergy will build four mega trains with a capacity of 8 million tonnes per year in the Ras Laffan complex.
This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 mtpa.
QatarEnergy also plans a second phase to further boost capacity to total 126 mtpa by 2027, as well as additional expansions.
The company’s unit Qatargas already operates in total fourteen LNG trains at Ras Laffan.