Qatar signs deal to supply gas to China for 27 years

The head of QatarEnergy, Saad al-Kaabi, told Reuters on Monday (20) that the company signed a 27-year purchase and sale agreement with China’s Sinopec, the longest in the history of liquefied natural gas deals ( LNG).

“Today is an important milestone for the first purchase and sale contract for the North Field East project, which is 4 million tons for 27 years for Sinopec of China,” Kaabi said in an interview in Doha, shortly before the signing of the agreement.

“That means the long-term business is here and it’s important for both the seller and the buyer,” he said.

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

QatarEnergy earlier this year signed deals for North Field East, the first and largest phase of North Field’s two-phase expansion plan, which includes six LNG trains that will increase Qatar’s liquefaction capacity to 126 million tonnes per year. year to 2027 of 77 million.

Later, it also closed contracts with partners for Campo Norte Sul, the second phase of the expansion.

“We are very happy with this agreement with Sinopec because 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,” said Kaabi.

Kaabi said talks with other buyers who want security of supply in China, Europe and globally are ongoing.

“I think recent volatility has led buyers to understand the importance of having long-term supply,” he said.

Kaabi also added that negotiations are underway with various entities for participation in the expansion project in the Gulf country.

QatarEnergy retained a total 75% interest in the expansion and may cede up to 5% of that interest to certain buyers.

Sources told Reuters in June that China’s national oil majors were in advanced talks with Qatar to invest in North Field East.