QatarEnergy inks huge LNG supply deal with China’s Sinopec

QatarEnergy has entered into a 27-year deal to supply LNG to China’s state-controlled energy giant Sinopec.

The state-owned LNG giant would supply 4 million tonnes from the North Field East project, starting in 2026, to Sinopec’s terminals in China, according to a statement by Sinopec released on Monday.

Sinopec said that its chairman, Ma Yongsheng, and Qatar’s energy minister and chief executive of QatarEnergy, Saad Sherida Al-Kaabi, signed the deal during an online ceremony.

This is the second LNG supply deal for the two firms.

In March 2021, QatarEnergy entered into a 10-year LNG deal with Sinopec and these supplies started in January this year.

Longest LNG supply deal in history

Al-Kaabi said in a separate statement released by QatarEnergy that this “is the first long-term SPA from the NFE project to be announced, and marks the longest gas supply agreement in the history of the LNG industry.”

Also, the deal comes on the heels of QatarEnergy’s conclusion of the formation of eight international partnership agreements for the NFE and North Field South (NFS) projects, which are expected to come online in 2026 and 2027, respectively.

QatarEnergy inks huge LNG supply deal with China's Sinopec
Image: QatarEnergy

QatarEnergy’s unit Qatargas currently has an LNG production capacity of 77 mtpa in the giant Ras Laffan complex.

Together, NFE and NFS form the wider North Field Expansion project to increase LNG production from the North Field, adding about 48 mtpa to Qatar’s export capacity and bringing it to 126 mtpa.

Previously, UK-based ShellFrance’s TotalEnergiesItaly’s Eni, and US firms ConocoPhillips and ExxonMobil took stakes in the $28.75 billion NFE project which will boost Qatar’s LNG export capacity by 32 mtpa.

ConocoPhilips, Shell, as well as TotalEnergies took stakes in the smaller NFS project with a capacity of 16 mtpa.

60 LNG carriers

Besides the LNG supply deal, QatarEnergy confirmed in the statement it had also concluded construction contracts and long-term time charter agreements for 60 LNG carriers as part of its giant LNG shipbuilding program in support of both the expansion projects.

South Korea’s three shipbuilders DSMEHyundai Heavy, Samsung Heavy, as well as China’s Hudong-Zhonghua will build these vessels.

QatarEnergy expects the number to grow to almost 100 LNG carriers in the future, it said.

(Article updated to add a statement by QatarEnergy.)

Most Popular

Monkey Island LNG selects ConocoPhillips’ liquefaction tech

Monkey Island LNG has selected ConocoPhillips’ optimized cascade process liquefaction technology for its planned 26 mtpa liquefaction and export facility in Cameron Parish, Louisiana.

Italy’s Adriatic LNG to resume full ops by mid-September

Italy’s Adriatic LNG import terminal, owned by VTTI and Snam, expects to resume full operations by the middle of this month following the completion of maintenance activities.

Gasgrid says seven Inkoo regas slots booked

Firms have booked seven regasification slots at the Inkoo FSRU-based terminal for 2026 following the completion of the annual allocation procedure, according to Finland’s gas system and LNG terminal operator Gasgrid.

More News Like This

Hanwha Engine completes first X-DF engine with VCR tech

South Korea's Hanwha Engine, a subsidiary of Hanwha, has completed what it claims is the world's first WinGD X-DF engine equipped with VCR (variable compression ratio) technology for LNG carriers.

NYK, partners take delivery of QatarEnergy LNG carrier

Japan’s NYK and its partners K Line, Malaysia’s MISC, and China’s CLNG have taken delivery of a 174,000-cbm LNG carrier built under the massive QatarEnergy shipbuilding program.

Another QatarEnergy LNG carrier named in China

Chinese shipbuilder Hudong-Zhonghua hosted a naming ceremony for another LNG carrier built under the massive QatarEnergy shipbuilding program.

QatarEnergy LNG tanker wraps up trials in China

A 174,000-cbm LNG carrier built as part of the massive QatarEnergy shipbuilding program has completed its trials in China, according to Hudong-Zhonghua.