Sinopec and Qatar Energy Company sign another LNG major deal
On November 4th, during the 6th China International Import Expo, Sinopec and Qatar Energy signed an integrated cooperation agreement for the Northern Gas Field Expansion Project Phase II (NFS), including a 27 year long-term purchase and sale agreement for liquefied natural gas (LNG) and an upstream equity participation agreement.
According to the agreement, Qatar Energy Company will supply 3 million tons of LNG to Sinopec annually and transfer 5% equity of its joint venture company (equivalent to 1.875% equity of NFS project) to Sinopec. This is the third long-term LNG purchase and sale agreement signed by both parties, and also the second integrated cooperation project reached by both parties after the first phase of the Northern Gas Field Expansion Project.
Qatar is one of the world's leading exporters of liquefied natural gas, and the Northern Gas Field Expansion Project is currently the largest new liquefied natural gas project in the world. The second phase of the Northern Gas Field Expansion Project will build two LNG production lines with a capacity of 16 million tons per year.
Sinopec and Qatar Energy Company have a good foundation for cooperation. In 2021, both parties signed a long-term purchase and sale agreement for 2 million tons/year of liquefied natural gas for a period of 10 years; In 2022, both parties signed a long-term purchase and sale agreement for liquefied natural gas with a capacity of 4 million tons per year and a duration of 27 years.
