Sinopec signs LNG supply agreement with Qatar

DOHA, November 6, 2023 – Chinese energy player Sinopec has joined NOC QatarEnergy’s North Field South expansion project, both companies announced on Saturday.

Under the deal Sinopec will take a 5% stake in a joint venture company that owns around 6 million tonnes per year of LNG capacity in the project

Additionally, Sinopec signed a 27-year LNG supply deal, which will see gas delivered from the project to receiving terminals in China.

The move follows Sinopec joining Qatar’s North Field East project in April 2023.

Qatar has signed many long-term gas trade agreements in 2023, including recently a 27-year contract signed with Eni for gas exports to Italy, a deal with TotalEnergies to export gas to France and a deal with Shell to export gas to the Netherlands.

Qatar expects to raise LNG production capacity through its two-phase expansion plan from 77 million tonnes per year to 126 million tonnes per year by 2027.

Qatar’s Minister of State for Energy Affairs recently said the country is on the path to take on 40% of global LNG output by 2029.

Qatar’s North Field is located in the northeast of the country’s peninsula. It is the world’s largest gas field and contains around 10% of the globe’s known gas reserves.

QatarEnergy held the ground-breaking ceremony for its giant North Field expansion project earlier in October.

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