State-owned QatarEnergy and China’s Sinopec signed a 27-year sale and purchase deal for the supply of liquefied natural gas (LNG) from Qatar’s North Field South (NFS) expansion project. This deal adds to a long-term LNG SPA the two firms signed last year.
The new deal includes the delivery of 3 million tons per annum of LNG from the NFS project to Sinopec’s receiving terminals in China.
Besides the SPA, the two firms also signed in Shanghai on Saturday a partnership deal for the NFS project, according to a statement by QatarEnergy.
The new agreements were signed by Qatar’s energy minister and chief executive of QatarEnergy, Saad Sherida Al-Kaabi and MA Yong-sheng, the chairman of Sinopec.
QatarEnergy said it will transfer a 5 percent interest to Sinopec in a joint venture company that owns the equivalent of 6 mtpa of LNG production capacity in the NFS project, or 1.875 percent in the entire project.
This project includes the construction of two trains each with a capacity of 8 mtpa.
Today’s partnership agreement is the second of its kind with Sinopec, following a similar one signed in Doha last April, which marked Sinopec’s entry as a shareholder in one of the North Field East (NFE) joint venture companies that own the NFE project.
In November last year, QatarEnergy also entered into the first 27-year deal to supply 4 mtpa per year from the NFE project, starting in 2026, to Sinopec’s terminals in China.
The NFE project will have four trains and a capacity of 32 mtpa.
Together, NFE and NFS form the wider North Field expansion project to increase Qatar’s LNG production from the North Field from 77 mtpa to 126 mtpa.
These three firms are also partners in the giant Qatari LNG expansion project along CNPC, ConocoPhillips, and ExxonMobil.
QatarEnergy also signed a huge 27-year LNG supply deal with China’s CNPC, as well as a 15-year deal to supply LNG to Bangladesh’s Petrobangla, and it signed a 15-year deal with US energy firm ConocoPhillips to supply Germany with LNG.