① On Saturday, Sinopec and Qatar Energy signed a 27-year long-term LNG purchase and sale agreement of 3 million tons per year; ② Sinopec will also subscribe for 1.875% of Qatar's NFS project; ③ CNPC also signed a long LNG purchase order with Qatar for 4 million tons per year in June.
Financial News Agency, November 6 (Editor Qi Lin)During the 6th China Expo, Sinopec and Qatar Energy signed an integrated cooperation agreement for the second phase (NFS) of the gas field expansion project in northern Qatar.
According to the agreement, Qatar Energy will supply 3 million tons of LNG to Sinopec every year for a period of 27 years; and transfer 5% of its joint venture to Sinopec (equivalent to 1.875% of the shares in the NFS project).
This is the third long-term LNG purchase and sale agreement signed by the two sides. It is also the second integrated cooperation project reached between the two sides after the first phase of the Northern Gas Field Expansion Project.
On June 20, China National Petroleum Corporation and Qatar Energy Corporation signed an agreement in Doha, stipulating that Qatar will deliver 4 million tons of liquefied natural gas (LNG) to CNPC every year for a period of 27 years. In addition, CNPC will participate in Qatar's Northern Gas Field Expansion (East) Project (NFE) in the form of a shareholding.
Qatar is the world's largest exporter of LNG, and the largest export destination is China, followed by India and Japan. Meanwhile, the Northern Gas Field is the largest single gas field in the world. Phase II of the Northern Gas Field Expansion Project is located in the southern region of the gas field. Two new LNG production lines will be built, with a production capacity of 16 million tons/year.
Sinopec and Qatar Energy have a good foundation for cooperation. In 2021, the two sides signed a long-term liquefied natural gas purchase and sale agreement of 2 million tons/year for a period of 10 years; in 2022, the two sides signed a long-term liquefied natural gas purchase and sale agreement of 4 million tons/year for a period of 27 years.
Qatar Energy holds 75% of the shares in the Northern Gas Field Project. Other shareholders include Total, Shell, etc. In July last year, Shell obtained a 6.25% stake in Qatar's Northern Oilfield East (NFE) project, which is the first phase of the expansion of the northern gas field. In October of the same year, Shell continued to acquire 9.4% of its shares in the Northern Gas Field South (NFS) project. The South project was the second phase of expansion. Meanwhile, Total currently holds 6.25% and 9.375% shares in NFE and NFS projects, respectively.
According to a report released by the Natural Gas Exporters Forum in April this year, Qatar exported 80 million tons of LNG in 2022, making it the world's largest LNG exporter. According to Chinese customs data, China imported about 63.44 million tons of LNG in 2022, of which 15.695,700 tons were imported from Qatar, an increase of 75% over the previous year, accounting for 20% of Qatar's exports.