QatarEnergy and China Petroleum & Chemical Corporation (Sinopec) inked a 27-year Sale and Purchase Agreement (SPA) with for the supply of 4 million tons per annum (MTPA) of LNG to the People’s Republic of China.
According to the provisions of the SPA, Sinopec’s receiving facilities in China would receive the contractual LNG volumes from QatarEnergy’s North Filed East (NFE) LNG expansion project.
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and MA Yongsheng, the Chairman of Sinopec, signed the agreement today during a hybrid virtual / physical ceremony. Joining Minister Al-Kaabi at QatarEnergy’s headquarters in Doha were senior executives from both companies, while Dr. MA and other high level Sinopec executives participated virtually from Beijing.
In his remarks at the signing ceremony, Al-Kaabi said: “We are pleased to enter into this agreement, which will further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar and help meet China’s growing energy needs. In addition, it opens a new and exciting chapter in our relationship with Sinopec, one that is very special and spans a number of different areas, and which we are excited about further growing and expanding into the 2050s.”
On his part, MA Yongsheng, the Chairman of Sinopec, said: “The signing of the long-term LNG SPA with QatarEnergy is a milestone and an important part of the integrated cooperation between the two sides on the NFE project. Qatar is the world’s largest LNG supplier, and China is the world’s largest LNG importer. The two countries share inherent complementarities and a good foundation for energy cooperation. The friendly and close ties between the two countries have created a good environment for us to constantly deepen cooperation.”
Following the 10-year SPA inked in March 2021 for the supply of 2 MTPA to China, this agreement is the second LNG SPA between QatarEnergy and Sinopec.
The SPA, which follows QatarEnergy’s conclusion of the formation of eight international partnership agreements for the North Field East and North Field South (NFS) projects, which are anticipated to come online in 2026 and 2027, respectively, is also the first long-term LNG offtake agreement from the NFE Expansion project.
As part of its historic LNG shipbuilding program in support of both the NFE and NFS expansion projects, QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers, with the number anticipated to increase to over 100 in the future.