Sinopec and QatarEnergy sign 27-year LNG agreement
China Petroleum and Chemical Corporation (Sinopec) and QatarEnergy have signed a long-term Liquified Natural Gas (LNG) purchase and sales agreement for the annual supply of four million tons of LNG to Sinopec. Both companies will also work together on Qatar’s North Field Expansion Project.
The 27-year, long-term LNG purchase and sale agreement is an important part of the integrated cooperation between the two sides, a statement said. It added that Sinopec Chairman Ma Yongsheng and Qatari Minister of State for Energy Affairs, President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, formally signed the agreement together during an online ceremony.
China and Qatar have enjoyed friendly and close ties while building synergies in the energy sector, Ma said. The healthy level of diplomacy creates a favourable environment for both sides to continuously deepen their cooperation.
"The signing of this agreement aligns with Sinopec's adherence to green, low-carbon, safe, and sustainable development," Ma highlighted. "The LNG supply will help meet the demand for natural gas in the Chinese market, but also further optimise China's energy mix while enhancing the security, stability, and reliability of energy supply."
Strengthening Bilateral Relations
"We are delighted to have reached this agreement, which will further strengthen the excellent bilateral relationship between China and Qatar," added Al-Kaabi. "The agreement will help to meet China's growing demand for clean energy. This cooperation, which spans different fields and will last for 27 years, marks an extraordinary and exciting new chapter of cooperation between the two sides.
Commissioning of the Northern Gas Field Expansion Project is slated for 2026. This agreement is the second long-term LNG purchase and sale agreement signed between Sinopec and QatarEnergy, and the first long-term LNG purchase and sale agreement for the Project, the statement concluded.