QatarEnergy has signed a major agreement with Sinopec, the Chinese company, for the supply of liquefied natural gas (LNG). The new 27-year agreement represents a milestone in the cooperation between the two companies.
Strategic collaboration
The agreement provides for the delivery of three million tonnes of LNG per year to Sinopec, strengthening the ties between Qatar and China in the energy sector. Sinopec is also involved in the second phase of the development of the world’s largest gas field, North Field South (NFS).
Qatar’s importance in the global LNG market
This collaboration will increase LNG production capacity in the region and help meet the growing demand for natural gas on the international market. Qatar is one of the world’s leading LNG producers, alongside the United States and Australia. Its main customers are in Asia, notably China, Japan and South Korea.
However, the country is increasingly attracting the attention of European countries looking for alternatives to Russian gas, especially since the invasion of Ukraine. Last April, Sinopec became the first Asian shareholder in the North Field East (NFE) project, another North Field expansion project shared with Iran. These agreements testify to the growing importance of energy relations between Qatar and China.
In short, the agreement between QatarEnergy and Sinopec marks a significant step forward in the energy sector, strengthening cooperation between Qatar and China. With the supply of three million tonnes of LNG per year and Sinopec’s participation in the second phase of the NFS project, this collaboration promises to meet the growing demand for natural gas on the world market.
