QatarEnergy Signs 27-Year LNG Supply Agreement with China’s Sinopec
QatarEnergy entered into a 27-year Sale and Purchase Agreement (SPA) with China Petroleum & Chemical Corporation (Sinopec) for the supply of 4 million tonnes per annum (MTPA) of LNG to the People’s Republic of China.
Under the terms of the SPA, the contracted LNG volumes will be supplied from QatarEnergy’s North Field East (NFE) LNG expansion project and will be delivered to Sinopec’s receiving terminals in China.
Minister of State for Energy Affairs and QatarEnergy President/CEO HE Saad Sherida Al-Kaabi and Sinopec Chairman Dr MA Yongsheng, signed the agreement recently during a ‘hybrid’ ceremony.
Senior executives from both companies, including high-level Sinopec executives witnessed the signing virtually from Beijing. In his remarks at the signing ceremony, HE Minister Al-Kaabi said they are pleased to enter into the 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.
In addition, it opens a new and exciting chapter in our relationship with Sinopec, one that is very special and spans a number of different areas, and which we are excited about further growing and expanding into the 2050s.
HE Minister Al-Kaabi added that 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.
The minister concluded his remarks by expressing his thanks and appreciation to the working teams from Sinopec, QatarEnergy and Qatargas, for their dedication and sincere efforts to conclude the SPA. He also expressed his gratitude to the leadership of HH The Amir Sheikh Tamim bin Hamad Al Thani, for his unwavering support to the country’s energy sector.
Dr MA Yongsheng, for his part, said that the signing of the long-term LNG SPA with QatarEnergy is a milestone and an important part of the integrated cooperation between the two sides on the NFE project.
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.
He said that Sinopec attaches great importance to its cooperation with QatarEnergy, which they regard as a strategic, long-term and an ‘all-around’ partner.
The agreement is the second LNG SPA between QatarEnergy and Sinopec, following the ten-year SPA signed in March 2021 for the supply of two MTPA to China.
The SPA is also the first long-term LNG offtake agreement from the NFE Expansion project and comes on the heels of QatarEnergy’s conclusion of the formation of eight international partnership agreements for the North Field East and North Field South (NFS) projects, which are expected to come online in 2026 and 2027, respectively.
QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers as part of its historic LNG shipbuilding programme in support of both the NFE and NFS expansion projects, with the number expected to grow to almost 100 in the future.
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