21-11-2022
Today, Qatar Energy signed a sale and purchase agreement with China Petroleum and Chemical Corporation (Sinopec) to supply 4 million tons per year of liquefied natural gas to the People's Republic of China for a period of 27 years, starting in 2026.
Under the agreement, the contracted quantities of LNG will be supplied from the Northeast Field Expansion Project, and will be delivered to Sinopec receiving stations in China.
The agreement was signed by HE Eng. Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, and Dr. MA Yongsheng, Chairman of Sinopec, who participated from the Chinese capital using visual communication technology.
The Minister of State for Energy Affairs said during the press conference held today at the main building of Qatar Energy in Doha: "The agreement will strengthen the distinguished bilateral relations between the People's Republic of China and the State of Qatar, and will help meet China's growing energy needs."
He added that the agreement will open a new and distinguished chapter in our relationship with Sinopec Corporation, which covers a number of different fields, which we hope will drive further growth and expansion towards the fifties of this century, adding that this contract is considered the longest in the history of the LNG industry.
For his part, Dr. MA Yongsheng said, "This long-term agreement with Qatar Energy constitutes a milestone and an important part of the integrated cooperation between the two sides in the Northeast Field Expansion Project. Qatar is the largest supplier of liquefied natural gas in the world, while China is the largest importer of liquefied natural gas." In the world, the two countries share many complementarities and good foundations for cooperation in the field of energy.
He stressed that the friendly and close relations between the two countries have created a good environment for constantly deepening cooperation between them, as Sinopec attaches great importance to cooperation with Qatar Energy, which is a comprehensive and strategic partner in the long term, expecting to reap more fruits of cooperation in the future.
He added, "Sinopec has always been committed to the development of green and clean energy, and our integrated cooperation with Qatar Energy in the Northeast Field project will not only meet the needs of the Chinese market, but also reflect Sinopec's commitment to a sustainable, responsible, safe and low-carbon development path."
It is noteworthy that this is the second agreement of its kind since March 2021, when Qatar Energy signed an agreement with Sinopec to supply 2 million tons per year of liquefied natural gas to China for a period of 10 years. It is also the first long-term sale and purchase agreement for liquefied natural gas from the North East Field Expansion Project, and comes in the wake of Qatar Energy completing the formation of eight international partnerships in the North East Field and North South Field expansion projects, which are expected to start production in 2026 and 2027, according to respectively.
Qatar Energy has also entered into contracts to build, lease and operate 60 LNG carriers as part of its historic shipbuilding program to support the North East Field and North South Field expansion projects, with the number expected to increase to around 100 tankers in the future.