QatarEnergy has signed a definitive partnership agreement with China Petrochemical Corporation (Sinopec) for the North Field East (NFE) expansion project, the largest project in the history of the LNG industry.
Under the terms of the agreement, QatarEnergy will transfer to Sinopec a 5 percent interest in the equivalent of one NFE train with a capacity of 8 million tons per annum (MTPA). This agreement will not affect the participating interests of any of the other shareholders.
The agreement marks the entry of Sinopec as a shareholder in one of the NFE joint venture companies that own the NFE project, one of the most critical projects in the global LNG industry.
“The People’s Republic of China is one of the most important gas markets in the world and is a key market for Qatari energy products. today’s event underscores QatarEnergy’s commitment to deepening its relationships with key LNG consumers while prioritizing long-term strategic partnerships and alignment with world-class partners from China, represented by Sinopec here today. The November 2022 agreement to supply Sinopec with 4 MTPA of LNG from the NFE project, HE Minister Al Kaabi said that agreement was not only the first NFE LNG supply agreement to be announced, but also the longest LNG supply agreement in the history of the industry. Sinopec will join Qatar’s LNG family becoming the first Asian shareholder in the NFE project.”
For his part, Sinopec Chairperson Dr. Ma Yongsheng said that this agreement is a tangible step towards both countries’ agreement to deepen the partnership between Sinopec and QatarEnergy, stressing that it is another milestone after the signing of the long-term LNG SPA from the NFE project in November 2022, marking the integrated cooperation achieved by both companies on the NFE project.
“China-Qatar energy cooperation features a natural complementarity,” adding that QatarEnergy is a leading LNG producer in the world and one of the most important partners of Sinopec. The cooperation with QatarEnergy will help Sinopec further optimize China’s energy consumption structure and enhance the security, stability, and reliability of clean energy supply,” Dr. Ma further added.