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Qatar Petroleum, one of the world’s biggest liquefied natural gas (LNG) suppliers, has secured a new deal to supply LNG to China for a period of 15 years.
The sale and purchase agreement (SPA) with CNNOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation, will see Qatar deliver 3.5 million tonnes of LNG per annum (MTPA) starting from January 2022, according to a statement on Wednesday.
CNOOC is China’s top offshore oil and gas producer.
“We are pleased to further build upon our strong relationship with CNOOC with the signing of this new [agreement]. We are especially proud to continue to meet the People’s Republic of China’s growing need for cleaner energy that LNG provides,” said Minister of State for Energy Affairs Saad Sherida Al-Kaabi.
The state-owned corporation is responsible for the sustainable development of the Gulf state’s oil and gas industry.
Qatar’s relationship with CNOOC started in September 2009, when the first LNG cargo was delivered to the Chinese firm.
As of August 2021, Qatar has delivered 715 LNG cargoes to China, of which 270 cargoes carrying more than 24 million tonnes of LNG were delivered to CNOOC.
Qatar Petroleum announced last February its decision to proceed with the North Field East Project (NFE) to boost its output from 77 to 110 million tonnes per year. North Field is said to be the biggest non-associated natural gas field in the world.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
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