QatarEnergy and Enoc sign gas byproduct supply deal

Wam

State-run QatarEnergy and Dubai’s Emirates National Oil Company (Enoc) Group have signed a long-term deal to supply condensate, a natural gas byproduct.

Under the 10-year agreement, the Qatari energy company will supply up to 120 million barrels of condensates to Enoc from this month, QatarEnergy said in a statement.

“We are pleased to sign this long-term condensate sale agreement, further strengthening QatarEnergy’s relationship with Enoc, which extends back to 2008,” said Qatar’s energy minister and QatarEnergy CEO Saad Al Kaabi.

• QatarEnergy signs long-term LNG deal with CNPC
• Qatar plans $5bn investment to fuel Iraqi economy
• Oil and gas account for 92% of Qatar’s Q1 budget surplus

The deal allows for an increase in the volumes exported to Enoc once additional condensate volume becomes available when the expansion of gas production from Qatar’s north fields – east and south – come online.

The move is part of QatarEnergy’s strategy to establish direct sales with end-users and build strategic business relationships.

QatarEnergy signed its second long-term liquefied natural gas supply agreement with China National Petroleum Corporation last month.

In November, the company signed a 27-year pact with China’s Sinopec for the supply of four million tonnes a year.

The Qatari energy firm has already signed a $10 billion contract with a joint venture headed by French engineering and technology company Technip Energies to substantially increase the capacity of the North Field South gas project.