Under the 27-year sale and purchase agreement (SPA), Sinopec will receive four million tonnes per annum (Mtpa) of LNG from QatarEnergy.
QatarEnergy will supply the contracted LNG volumes from its North Filed East (NFE) LNG expansion project. The LNG is planned to be delivered to Sinopec’s receiving terminals in China.
Qatar Minister of State for Energy Affairs and Qatar Energy president and CEO Al-Kaabi said: “We are pleased to enter into this agreement, which will further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar and help meet China’s growing energy needs.
“This is the first long-term SPA from the NFE project to be announced, and marks the longest gas supply agreement in the history of the LNG industry.”
The NFE is the first of the two-phase North Field expansion plan, which includes six LNG trains to boost the liquefaction capacity of Qatar from 77Mtpa to 126Mtpa by 2027.
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Sinopec chairman Dr MA Yongsheng said: “Qatar is the world’s largest LNG supplier, and China is the world’s largest LNG importer. The two countries share inherent complementarities and a good foundation for energy cooperation.
“Our integrated cooperation with QatarEnergy on the NFE project could not only meet the needs of the Chinese market, but also reflect Sinopec’s commitment to a low-carbon, green, safe, responsible, and sustainable development path.”
Last year, QatarEnergy signed a ten-year SPA with Sinopec for the supply of 2Mtpa of LNG to China.
QatarEnergy has so far signed eight international partnership agreements for the NFE and North Field South (NFS) projects that are planned to be commissioned in 2026 and 2027, respectively.