Qatar has sealed a major deal with China covering the supply of LNG to China for 27 years.
QatarEnergy and China National Petroleum Corporation (CNPC) have signed an agreement covering the 27-years supply of LNG to China and partnership in the North Field East LNG expansion project (NFE).
The two parties team up, under an LNG Sales and Purchase Agreement, for the delivery of 4 million tons of LNG per annum from the NFE project to CNPC’s receiving terminals in China over a span of 27 years.
Under a share sale and purchase deal, QatarEnergy will also transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8 million tons per annum.
Dai Houliang, the Chairman of CNPC said that this collaboration it lays a solid foundation for the energy cooperation between the two sides in the next three decades.
The Chairman of CNPC also revealed discussions between the two parties for cooperation in the hydrocarbon industry and in other areas like green and low carbon energies.
With this deal CNPC will become a partner in the NFE project and as the two parties claim this will not affect the participating interests of any of the other shareholders in the project.
His Excellency Minister Al-Kaabi stated that “We are pleased to embark on this partnership with CNPC and to build on the excellent relations between the People’s Republic of China and the State of Qatar. These agreements demonstrate our unwavering commitment to our customers and partners and to our shared ambition for a sustainable future facilitated by a cleaner, and more eco-friendly energy source that would catalyze substantial socio-economic development.”
On his part, Mr. Dai Houliang, the Chairman of CNPC, said: “Our collaboration over the NFE project represents a major achievement and excellent practice of both CNPC and QatarEnergy in delivering on the strategic consensus of the leaders of our countries. It is another milestone in forming a strategic synergy between China’s “Belt and Road” Initiative and Qatar’s National Vision 2030.”