Qatar Petroleum said Monday it entered into a ten-year LNG supply deal with China Petroleum & Chemical Corporation (Sinopec).
Under the SPA, QP will supply 2 million tons per year of LNG to China, it said.
LNG deliveries to Sinopec’s LNG terminals will start in 2022.
QP keeps piling up long-term deals as it works on its expansion projects and this marks the third the firm announced in a month following the Vitol deal for Bangladesh but also the Pakistan agreement.
Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said this agreement would be Sinopec’s first long-term SPA with Qatar.
“Our LNG relationship with China dates back to 2009, when we started supplying LNG through a host of LNG SPAs with a number of our valued Chinese partners,” he said.
This deal would further supplement Qatar’s “contribution in meeting China’s growing energy needs,” Al-Kaabi said.
“The signing of the long-term LNG SPA with QP is a further step by Sinopec to deliver its commitment to sustainability while meeting the growing needs of the Chinese market,” Zhang Yuzhuo, chairman of Sinopec, said.
“We believe achieving carbon emission peak and carbon neutrality are responsibilities of the energy industry and call for transformation,” he said.
Since the first LNG delivery in September 2009 to date, Qatar has supplied China with more than 62 million tons of LNG, according to QP.
China is a “key and strategic” energy partner for Qatar throughout the entire energy value chain, it said.
It is also the main driver of the growth in the global LNG market as the government adopts increasingly progressive environmental policies, QP said.