QatarEnergy, Sinopec strike 27-year LNG supply deal  

QatarEnergy

QatarEnergy, the world’s largest liquefied natural gas (LNG) supplier, has signed agreements with China Petrochemical Corporation (Sinopec) for the expansion of the North Field South (NFS) project and a long-term LNG supply deal.

The companies signed a new 27-year LNG supply and purchase agreement to deliver three million tonnes per annum (mtpa) of LNG from the NFS project to Sinopec’s receiving terminals in China.

The deal, signed at the China International Import Expo in Shanghai, is the third long-term supply deal between Sinopec and QatarEnergy.

They will also cooperate on the development of the second phase of the NFS expansion project, which will supply three million metric tonnes of LNG per year to the Chinese petrochemicals major, state-owned QatarEnergy said in a statement.

In addition, QatarEnergy will transfer a five percent interest to Sinopec in a joint venture company that owns the equivalent of six million tonnes per year of LNG production capacity in the NFS project.

In November 2022, a pact was signed to supply four MTPA of LNG over 27 years.

Last April, QatarEnergy signed a deal with Sinopec, marking its entry as a shareholder in one of the North Field East joint venture companies. 

Last month, QatarEnergy signed a long-term LNG supply contract with Italian energy company Eni to support Europe’s energy security.

The North Field expansion project includes six LNG trains, which will increase Qatar’s liquefaction capacity to 126 mtpa by 2027 from the current 77 mtpa.