Qatar signs 27-year LNG deal with China

It includes six LNG trains to ramp up Qatar’s liquefaction capacity to 126 million tonnes per year by 2027

DOHA:

QatarEnergy has signed a 27-year deal to supply China’s Sinopec with liquefied natural gas (LNG), the longest such LNG agreement so far as volatile markets drive buyers to seek long-term deals.

Following Russia’s invasion of Ukraine in February, competition for LNG has become intense, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent’s imports.

“Today is an important milestone for the first sales and purchase agreement (SPA) for North Field East project, it is 4 million tonnes for 27 years to Sinopec of China,” QatarEnergy Chief Saad al-Kaabi told Reuters in Doha, shortly before the deal signing.

“It signifies long-term deals are here and important for both seller and buyer,” he said, adding that the deal was the LNG sector’s largest single sales and purchase agreement on record.

The North Field is part of the world’s biggest gas field that Qatar shares with Iran, which calls its share South Pars.

Published in The Express Tribune, November 22^nd, 2022.

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