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.)

- Advertisements -

Most Popular

BP expects LNG demand to grow up to 40 percent by 2030

UK-based energy giant BP expects global demand for liquefied natural gas (LNG) to rise up to 40 percent by...

Venture Global’s Plaquemines LNG gets OK to introduce gas to GTG

US LNG exporter Venture Global LNG has received approval from US energy regulators to introduce natural gas to the...

AG&P LNG inks deal with BKLS to deliver spot LNG cargo to China

Nebula Energy’s AG&P LNG has signed a deal with Singapore-based BK LNG Solution (BKLS) to deliver one spot liquefied...

More News Like This

GTT bags order for 10 giant LNG carriers

French LNG containment giant GTT has secured an order from China's Hudong-Zhonghua for ten 271,000-cbm liquefied natural gas carriers. GTT...

Golden Pass LNG to speed up pipeline construction

QatarEnergy and ExxonMobil are seeking approval from US energy regulators to increase the peak workforce to speed up the...

Japan’s Chiyoda provides Golden Pass LNG update

Japan's engineer Chiyoda has released an update regarding the construction of the Golden Pass LNG export project in Texas,...

QatarEnergy, ExxonMobil update on Golden Pass LNG work

Energy giants QatarEnergy and ExxonMobil released the latest construction update for their Golden Pass LNG export terminal on the...