Second largest Qatar-China LNG deal

For the second time in a year, Qatar signed a major gas supply agreement with a Chinese public company.

Under the 27-year agreement signed by China National Petroleum Corporation (CNPC) and QatarEnergy, China will buy 4 million metric tons of LNG annually from Qatar.

The Chinese company will also have a stake in Qatar’s North Field East (NFE) gas field expansion project, according to Saad al-Kaabi, president and CEO of QatarEnergy.

Said participation corresponds to 5 percent of a facility where natural gas from the field is liquefied. The annual capacity of the facility is 8 million tons.

QatarEnergy agreed with the Chinese company Sinopec in November last year to cover 4 million tons per year. Similarly, Sinopec had bought a 5 percent stake in a facility with a capacity of 8 million tons.

With the deal, first reported in the Financial Times, QatarEnergy will have signed its third deal to sell LNG from a field expansion project to an Asian buyer. (Reuters)