Skip to content Skip to Search
Skip navigation

QatarEnergy signs long-term LNG deal with CNPC

QatarEnergy
Saad Al-Kaabi, CEO of QatarEnergy, and Dai Houliang, chairman of CNPC, signing the agreements in Doha
  • State player’s second LNG deal with a Chinese company
  • CNPC hails ‘another milestone’ in trade relationship
  • Deal also includes stake in North Field LNG project

State-owned QatarEnergy has signed its second long-term liquefied natural gas (LNG) supply agreement with a Chinese government-owned energy company.

Under the 27-year supply agreement, China National Petroleum Corporation (CNPC) will purchase four million metric tons of LNG a year from the Gulf nation.

In addition, CNPC will take a five percent equity stake in one of the North Field East (NFE) units with a capacity of 8 million tonnes per annum, QatarEnergy said.

The transfer will not impact the interests of any of the other shareholders in the project. The NFE expansion project is estimated to cost $30 billion.

“Today we are signing two agreements that will further enhance our relations with one of the most important gas markets in the world and a key market for Qatari energy products,” Saad Al Kaabi, CEO of QatarEnergy, said, terming CNPC as a “valuable partner in the NFE project”.

“These agreements demonstrate our shared ambition for a sustainable future facilitated by a cleaner and more eco-friendly energy source that would catalyse substantial socio-economic development.”

Dai Houliang, chairman of CNPC, called the agreements “another milestone” in forming a strategic synergy between China’s Belt and Road Initiative and Qatar’s National Vision 2030.

“It lays a solid foundation for the energy cooperation between the two sides in the next three decades.”

CNPC will continue actively discussing with QatarEnergy all-round cooperation across the hydrocarbon industry chain and other areas like green and low carbon energies to build a long-term and multi-dimensional strategic partnership, Houliang added.

QatarEnergy in April said that state-owned China Petrochemical Corporation (Sinopec) will acquire part of the NFE expansion project.

The Chinese firm will take a five percent stake in the equivalent of one North Field East LNG units with an annual capacity of eight million tonnes.

Sinopec in November also signed a deal in which QatarEnergy agreed to supply four million tonnes of LNG annually for 27 years.

QatarEnergy has announced plans to retain a 75 percent stake in the North Field expansion.

The Qatar Investment Authority (QIA), the country’s $445 billion sovereign wealth fund, will manage most of the revenues from the North Field expansion, Reuters reported Al Kaabi as saying.

“I think the majority of the revenue of what’s going to come from this North Field expansion will go into a future generation wealth fund in QIA, making sure that the Qatari people and people living in Qatar are well taken care of,” he added.

Latest articles

FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

UAE and Kenya complete Cepa negotiations

The UAE and Kenya have completed negotiations on a comprehensive economic partnership agreement (Cepa) between the two countries. It is the 12th Cepa deal secured by the UAE and its third in Africa, after agreements were signed last year with Mauritius and the Republic of the Congo (Congo-Brazzaville). “The UAE-Kenya Cepa will not only boost […]

The 450 companies operating at Dubai Science Park include AstraZeneca, and the free zone plans to add 200,000 sq ft of lab and office space

Dubai Science Park reveals expansion plans

Dubai’s biotechnology free zone is adding 60 percent more offices, laboratories and warehouses over the next few years to cater for an influx of new companies, its senior vice-president told AGBI.  Dubai Science Park, part of Dubai-listed Tecom Group, is planning an expansion of 200,000 sq ft of additional storage and logistics facilities at the […]

A worker at a phosphate production plant in Metlaoui, Tunisia. Phosphate accounts for 15% of Tunisia's exports

Saudi Arabia loans $55m for Tunisian rail renewal

Saudi Arabia has signed a $55 million loan deal with Tunisia to finance the renewal of the North African country’s rail network.  The railway is used to transport phosphate, a sector that makes up around 4 percent of Tunisia’s GDP and 15 percent of the country’s exports. Tunisia plans to produce eight million tonnes by […]

Visitors enjoy the Karnak Temples; the government hopes to entice 30 million tourists to Egypt a year by 2030 tourism egypt

Egypt tourism up 5% in early 2024 despite Gaza conflict

The number of tourists visiting Egypt increased by five percent year on year in the first 40 days of 2024, according to Egypt’s tourism minister, Ahmed Issa. The announcement came after reports in January that visitor numbers for the whole of 2023 reached a record high of 14.9 million, just shy of the 15 million […]