• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 1 hour Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.

China Set To Sign Another Massive LNG Deal With Qatar

China National Petroleum Corporation (CNPC), the largest gas importer in the country, is in the late stages of finalizing a huge long-term LNG import deal with Qatar, sources familiar with the matter told Reuters on Monday.

This would be a second such massive agreement of a Chinese energy giant with QatarEnergy in just a few months.  

"CNPC has agreed on the major terms with Qatar in a deal that will be very similar to Sinopec's," a Beijing-based state energy official told Reuters.

In November, Qatar's state firm QatarEnergy signed the longest-term contract in the history of the LNG industry in a deal to supply LNG to Chinese state energy giant Sinopec for 27 years.

QatarEnergy will supply China Petroleum & Chemical Corporation (Sinopec) with 4 million tons per annum (MTPA) of LNG to China from the North Field East (NFE) expansion project.

"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," Saad Sherida Al-Kaabi, Qatar's Minister of State for Energy Affairs and President and CEO of QatarEnergy, said at the time.

The QatarEnergy-Sinopec agreement was also the first long-term LNG offtake agreement from the NFE Expansion project. Qatar's North Field East and North Field South (NFS) projects are expected to come online in 2026 and 2027, respectively.

Now CNPC is reportedly finalizing a similar deal with the Qatari state energy firm to buy LNG from the North Field expansion project.

A major deal for China with Qatar, a large LNG exporter, comes at a time when Chinese-U.S. relations are at a low point again. The U.S. is a major LNG exporter competing with Qatar and Australia to be the world's number-one LNG seller.

A huge long-term deal with Qatar would also give China more contracted supply to reduce exposure to the volatile spot LNG prices.  


By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on February 13 2023 said:
    The second new LNG deal between Qatar and China not only confirms China as the world’s largest LNG importer but also locks into Qatar’s new capacity of 110 million tons (mt) by 2024/25. Moreover, it signifies that rising demand for LNG will ensure that LNG prices will continue to be excessively high well into the future. Furthermore, this could be at the expense of US LNG exports to China.

    China National Petroleum Corporation (CNPC), the largest gas importer in the country, is in the late stages of finalizing a huge long-term LNG import deal with Qatar.

    This would be the second such massive deal between Qatar and China in just a few months coming after Sinopec signed in November the longest-term contract for the supply of 4 mt of Qatari LNG annually for 27 years.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News