Qatar Petroleum has entered into a 10-year LNG Sale and Purchase Agreement (SPA) with China Petroleum & Chemical Corporation (Sinopec) for the supply of 2 million tons per annum (MTPA) of liquefied natural gas (LNG) to China.
The SPA was signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, and Zhang Yuzhuo, the Chairman of Sinopec Group, during a virtual ceremony attended by senior officials from both sides.
Under the agreement, LNG deliveries will commence in January 2022, and will be delivered to Sinopec’s LNG terminals in China. This SPA further demonstrates the State of Qatar’s continued commitment to meeting the growing energy demand of its customers globally in the form of reliable long term LNG supplies.
Al-Kaabi said: “In a step that will further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar, we are delighted to enter into this historic long term LNG SPA. We are also proud of the fact that this agreement will be Sinopec’s first long term LNG SPA from Qatar, and we are hopeful that it will mark the start of a long and fruitful partnership with Sinopec. Our LNG relationship with China dates back to 2009, when we started supplying LNG through a host of LNG SPAs with a number of our valued Chinese partners. This SPA will further supplement Qatar’s contribution in meeting China's growing energy needs and we look forward to commencing deliveries under the agreement."
Al-Kaabi added: “This SPA also illustrates our position in the market as a reliable and trust-worthy LNG supplier, and we are grateful to all our customers around the world who select us as their LNG supplier of choice.”
Zhang Yuzhuo, Chairman of Sinopec Group, said: “Sinopec has been a strong advocate for cleaner and greener development. The signing of the long term LNG SPA with Qatar Petroleum is a further step by Sinopec to deliver its commitment to sustainability while meeting the growing needs of the Chinese market. We believe achieving carbon emission peak and carbon neutrality are responsibilities of the energy industry and call for transformation. We are proud to team up with Qatar Petroleum, one of the premier suppliers in the industry, to supply cleaner energy to China. We are also excited to begin a new journey of more comprehensive cooperation with Qatar Petroleum in the years to come.”
Khalid bin Khalifa Al Thani, CEO of Qatargas, commented: “This landmark agreement comes as a boost to the existing relationship with our Chinese customers. As the World’s Premier LNG Company, Qatargas is committed to meeting the clean energy needs of customers around the globe who depend on reliable LNG deliveries.”
Since the first LNG delivery in September 2009 to date, Qatar has supplied China with more than 62 million tons of LNG. China is a key and strategic energy partner for the State of Qatar throughout the entire energy value chain. It is also a main driver of the growth in the global LNG market as the government adopts increasingly progressive environmental policies.