QatarEnergy inks 27-year deal with Sinopec to supply LNG to China

Qatari state-owned petroleum company, QatarEnergy has entered into a 27-year sale and purchase agreement (SPA) with China Petroleum & Chemical Corporation (Sinopec) for the supply of 4 million tons per annum (MTPA) of LNG to China.

Under the terms of the agreement, the contracted LNG volumes will be supplied from QatarEnergy’s North Filed East (NFE) LNG expansion project and will be delivered to Sinopec’s receiving terminals in China.

The agreement is the second LNG SPA between QatarEnergy and Sinopec, following the 10-year SPA signed in March 2021 for the supply of 2 MTPA to China.

“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. This is the first long-term SPA from the NFE project to be announced, and marks the longest gas supply agreement in the history of the LNG industry.”

Dr. MA Yongsheng, the Chairman of Sinopec, said that “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,” Dr. Yongsheng further added.

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