QatarEnergy has signed a 27-year deal to supply China Petroleum & Chemical Corporation (Sinopec) with 4 million tons per annum (mtpa) of liquefied natural gas.
The contracted LNG volumes will be supplied from QatarEnergy’s North Field East (NFE) LNG expansion project and will be delivered to Sinopec’s terminals in China, Qatar’s state energy company said in a statement on Monday.
The financial terms of the deal were not disclosed.
“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,” Saad Al Kaabi, Qatar’s Minister of State for Energy Affairs and the chief executive of QatarEnergy, said.
“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.”
The current strains on gas supply have led to energy shortages in several parts of the developing world that rely on imported gas, notably Pakistan and Bangladesh. Major growth markets for gas, such as India and China, meanwhile sharply reduced their LNG imports in 2022.