Qatar has penned an agreement with China National Petroleum Corporation (CNPC) to supply liquefied natural gas (LNG) for 27 years, marking the second long-term deal with China in less than a year.
China is Qatar’s largest customer for LNG and one of the world’s biggest importers of energy resources.
The CEO of Qatar Energy and Qatar’s Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, stated: “Qatar will supply China with four million tons of natural gas annually from the North Field East expansion project over a span of 27 years.”
He added, “This will become the second sale and purchase agreement for LNG to China under the North Field East expansion project.”
In November 2022, Qatar signed a similar agreement with China’s oil giant, Sinopec, to supply four million tons of natural gas annually for 27 years. That contract was then considered the “longest in the history of the LNG industry.”
In April, Sinopec became the first Asian group to obtain a 5% stake in Qatar’s North Field East expansion project.
Al-Kaabi announced on Tuesday the signing of another share sale and purchase agreement, allowing the China National Petroleum Corporation to “join the LNG family in Qatar as a partner in the North Field East expansion project,” part of the world’s largest natural gas field.
Qatar is working on the expansion of the North Field, the world’s largest natural gas field, which extends under the Gulf waters to Iranian territories and comprises approximately 10% of the known natural gas reserves in the world, according to estimates by Qatar Energy.
The project, valued at $28.75 billion, is expected to help Qatar increase its LNG production by more than 60% to reach 126 million tons by the year 2027.