Under the sale and purchase agreement (SPA), QatarEnergy will supply three million tonnes per annum (mtpa) of LNG to Sinopec.
The LNG will be supplied from the North Field South (NFS) expansion project for a period of 27 years.
Concurrently, the government-owned companies announced a partnership for the NFS project.
In accordance with the terms of the second agreement, Sinopec will transfer a 5% stake in a joint venture (JV) to Sinopec.
The JV owns 6mtpa of LNG production capacity in the NFS project.
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QatarEnergy stated that the deal will not impact the participating interests of other shareholders of the project.
QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “The State of Qatar has firmly supported the role of natural gas as a central component of any energy mix on the road to a realistic energy transition. We are providing the world with the cleanest hydrocarbon source of energy, which enjoys both economic and environmental qualities to support sustainable growth and a better future.
“In fact, by 2029, about 40% of all new LNG supplies will be provided by Qatar. Therefore, we believe that a stronger relationship between the world’s largest LNG producer and the world’s largest energy consumer is a natural development of the realities shaping the energy map today.”
The partnership for the NFS project is the second of its kind with Sinopec.
In April 2022, the first was signed in Doha marking Sinopec’s entry as a shareholder in one of the North Field East (NFE) JV companies that own the NFE LNG project.
The LNG supply deal also builds on the 27-year SPA signed in November 2022 for the NFE project.