QatarEnergy will supply 4 million tons of LNG to China per year as part of the expansion of Qatar’s Northern Gas Field.
A long-term contract
QatarEnergy and Sinopec signed a long-term liquefied gas (LNG) purchase and sale agreement. The agreement represents 4 million tons of LNG purchased by China each year. The cooperation of both parties takes place around the project in the framework of the expansion of the North gas field in Qatar.
Despite its economic slowdown, China seems to be willing to pay a price to secure diverse energy sources. This business relationship will last 27 years. Ma Yongsheng, the president of Sinopec says:
“The signing of this agreement is consistent with Sinopec’s commitment to green, low-carbon, safe and sustainable development. The LNG supply will help meet the demand for natural gas in the Chinese market, and will also optimize China’s energy mix while improving the security, stability and reliability of energy supply.”
Security of supply
This agreement provides China with a reliable supply of LNG. It is for the country to face the global energy crisis. Moreover, this agreement heralds a new diplomatic and commercial era for China and Qatar.
The commercial agreement between the Qatari and Chinese giant, also signs an unprecedented diplomatic agreement. Ma Yongsheng, president of Sinopec says:
“China and Qatar have developed close and friendly ties while creating synergies in the energy sector. The healthy diplomatic relationship between them creates a favorable environment for both sides to continue deepening their cooperation.”
The northern gas field extension project will take place in the year 2026.