Deal will provide China with gas from Qatar’s North Field East project until at least 2050
Qatar’s largest state-owned petroleum company on Monday signed a 27-year sales and purchase agreement with China’s Sinopec.
QatarEnergy head Saad Al-Kaabi told news outlets on Monday morning that the company signed one of the longest agreements in the history of liquefied natural gas deals with the Chinese state-owned firm.
“Today marks an important milestone for the first sale and purchase agreement for the North Field East project; it marks the 27th anniversary for China’s Sinopec,” Al-Kaabi said in an interview with Reuters in Doha just before the deal was signed. 4 million tons for years.”
“It shows that long-term deals are here and are important to both sellers and buyers,” the energy major said. Qatar shares the northern field with its northern neighbor Iran, which is a part of the world’s largest gas field.
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Earlier, the company signed an agreement to build six additional LNG trains at North Field East, which will help increase Qatar’s liquefaction capacity to 126 million tonnes over five years. In addition, Qatar Energy has signed other deals with partners for the North Field South for additional expansions.
Al-Kaabi told Reuters: “We are very pleased about this deal with Sinopec as we have had a long-term relationship in the past and this takes our relationship to new heights as we have a SPA that will last until the 2050s.” Will work.” “I think the recent volatility has led buyers to understand the importance of long-term supply.”
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Al-Kaabi said the firm is in talks with other buyers in China and Europe who want to hold equity in future expansion projects.
In expansion projects in the North field, Qatar Energy holds at least a 75% stake and allows up to 5% equity for buyers, according to Reuters.
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