Qatar Signs Second 27-Year Gas Supply Deal with Sinopec of China

Qatar has agreed to supply Sinopec with natural gas for 27 years, the Gulf emirate's state-owned energy company said Saturday, its second such deal with the Chinese firm.

Doha will supply three million tonnes of gas a year under the deal, QatarEnergy said, announcing another agreement granting the Chinese oil giant for a further share of Qatar's North Field gas expansion project.

The expansion, which broke ground last month, contains the world's biggest natural gas reserves and extends under the Gulf into Iranian territory.

Under the deal inked in Shanghai, QatarEnergy will give Sinopec a five percent interest in a joint venture with a six million tonnes per year capacity in the second phase the expansion, North Field South.

Asian countries led by China, Japan and South Korea are the main market for Qatar's gas, which has been increasingly sought by European countries since Russia's invasion of Ukraine early last year.