QatarEnergy has signed a 27-year sale and purchase agreement (SPA) with China Petroleum & Chemical Corporation (Sinopec) for the supply of four million tons per annum (MTPA) of LNG to China.
Under the terms of the agreement, the contracted LNG will be supplied from QatarEnergy’s North Field East (NFE) LNG expansion project and will be delivered to Sinopec’s receiving terminals within the Asian country.
The agreement is the second LNG SPA between the two entities, following the 10-year one signed in March 2021 for the supply of 2 MTPA to China.
— QatarEnergy (@qatarenergy) November 21, 2022
The latest agreement is also the first long term LNG offtake agreement from the NFE Expansion project.
It follows QatarEnergy’s international partnership agreements for the NFE and North Field South (NFS) projects, which are expected to come online in 2026 and 2027, respectively.
“We are pleased to enter into this agreement, which will further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar and help meet China’s growing energy needs,” said Saad Sherida Al-Kaabi, president and CEO of QatarEnergy.
“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,” added Al-Kaabi, who is also the Minister of State for Energy Affairs.
“Qatar is the world’s largest LNG supplier, and China is the world’s largest LNG importer. The friendly and close ties between the two countries have created a good environment for us to constantly deepen cooperation,” added Dr MA Yongsheng, chairman of Sinopec.
“Our integrated cooperation with QatarEnergy on the NFE project could not only meet the needs of the Chinese market, but also reflect Sinopec’s commitment to a low-carbon, green, safe, responsible and sustainable development path.”
QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers as part of its LNG shipbuilding programme in support of the NFE and NFS expansion projects, with the number expected to grow to almost 100 in the future.