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Qatar Petroleum (QP), the world’s top liquefied natural gas (LNG) supplier, has signed a long-term agreement to supply LNG to China Petroleum and Chemical Corporation (Sinopec) for several years.
With the new deal, said to be the first in the history of the Chinese firm, Qatar Petroleum will supply two million tonnes of LNG to Sinopec every year for a term of ten years.
The long-term purchase and sales agreement was signed on March 22 via an online video conference.
China is a key and strategic energy partner for the state of Qatar, having supplied 62 million tonnes of LNG to China since 2009.
“This cooperation will further enhance Qatar’s ability to supply the Chinese market to meet growing demand, as well as highlight Qatar Petroleum’s leading position in the industry,” a statement released on Tuesday said.
Two major firms
Qatar Petroleum was established in 1974. It is responsible for the development of the oil and gas industry in the Gulf state, with its main business including oil and gas exploration and development.
Sinopec is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale pf petroleum and natural gas.
“We look forward to further cooperation with Qatar Petroleum in the future. Sinopec has always advocated for the development of green and clean energy and the long-term LNG supply agreement will not only meet the needs of the Chinese market but will also demonstrate Sinopec’s commitment to a low-carbon, green, safe, responsible and sustainable development path,” said Zhang Yuzhuo, Sinopec chairman.
Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, and president and CEO of Qatar Petroleum, said the first long-term LNG deal with Sinopec has further consolidated the “sound bilateral relations” between the two states.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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