QatarEnergy signs 27-year LNG deal with China’s Sinopec
By Andrew Mills and Maha El Dahan
DOHA, November 21 (Reuters) – QatarEnergy chief Saad al-Kaabi told Reuters on Monday that the company had signed a 27-year sale and purchase agreement with China’s Sinopec, the longest in the history of liquefied natural gas deals ( LNG).
“Today is a milestone for the first sale and purchase agreement for the North Field East project, this is 4 million tons for 27 years for Sinopec of China,” Kaabi said during a briefing. interview in Doha, shortly before the signing of the agreement.
“That means long-term agreements are there and important to both the seller and the buyer,” he said.
The North Field is part of the world’s largest gas field that Qatar shares with Iran, which calls its share South Pars.
QatarEnergy earlier this year signed agreements for North Field East (NFE), the first and largest phase of North Field’s two-phase expansion plan, which includes six LNG trains that will increase Qatar’s liquefaction capacity. to 126 million tonnes per year by 2027 from 77 million.
He also later signed contracts with partners for North Field South (NFS) the second phase of the expansion.
“We are very happy with this agreement with Sinopec as we have had a long-term relationship in the past and it takes our relationship to new heights as we have a SPA that will last well into the 2050s,” Kaabi said.
Kaabi said negotiations with other buyers in China, Europe and around the world who want security of supply are ongoing.
“I think the recent volatility has made buyers realize the importance of having a long-term supply,” he said.
Kaabi also added that negotiations for an equity stake in the Gulf country’s expansion project were underway with several entities.
QatarEnergy has retained an overall 75% stake in the expansion and may sell up to 5% of that stake to certain buyers.
Sources told Reuters in June that China’s national oil majors were in advanced talks with Qatar to invest in North Field East.
(Reporting by Andrew Mills and Maha El Dahan; Editing by Jason Neely)
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