Qatar signs second major LNG deal with China

Qatar, the world’s largest liquefied natural gas (LNG) exporter, has secured its second major supply deal with China in less than a year.

State-controlled QatarEnergy and China National Petroleum Corporation (CNPC) have signed an agreement under which China will buy 4 million tons of LNG annually from the Arab Gulf state for a period of 27 years.

Gas for CNPC will come from the North Field expansion project, which aims to increase Qatar’s LNG production capacity from 77 million tonnes per year to 126 million tonnes per year by 2027. The steel cutting of the first of its new generation of chartered vessels took place.

As part of the agreement, CNPC will also receive an interest in the North Field East expansion, the first and major part of the two-stage North Field expansion plan, which is equivalent to 5% of an 8 million tonne-per-year LNG train.

A similar deal was struck in November with China Petroleum & Chemical Corporation (Sinopec), when the Chinese gas giant also bought 4 million tonnes of LNG over 27 years and a 5% stake in an 8 million tonnes-per-year LNG train signed.

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