LNG giant QatarEnergy said it has entered into a 10-year deal to supply LNG to Chinese state-owned utility Guangdong Energy.
Under the sales and purchase agreement, QP would deliver one million tons per year of LNG to Guangdong Energy Group Natural Gas starting in 2024, according to a statement on Monday.
Deliveries of LNG under the deal would utilize Qatar’s fleet of conventional, Q-Flex and Q-Max LNG vessels, allowing GEG to receive LNG primarily at the Dapeng and Zhuhai receiving terminals, QatarEnergy said.
This marks the eighth long-term deal QatarEnergy has signed since February this year. Prior to this contract, the firm entered into a 15-year deal to supply LNG to a unit of China’s CNOOC.
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.