QatarEnergy, CNPC sign LNG supply agreement

QatarEnergy and China National Petroleum Corporation (CNPC) have sealed agreements related to long-term LNG supply to China and collaboration in the North Field East LNG expansion project (NFE), the Qatari state-owned company said on June 20.

According to the LNG sales and purchase agreement (SPA), Qatar will deliver 4mn metric tons/year of LNG from the NFE project to CNPC's receiving terminals in China over a 27-year period.

In addition to the SPA, QatarEnergy will transfer a 5% interest in the equivalent of one NFE train, boasting a capacity of 8mn mt/yr, to CNPC through a share sale and purchase agreement. This move elevates CNPC to the status of a partner in the NFE project without impacting the existing participating interests of other shareholders.

CNPC has become the second Chinese company to pick up a stake in the NFE project after Sinopec. UK-based Shell, France’s TotalEnergies, Italy’s Eni, and US firms ConocoPhillips and ExxonMobil are already partners in the $28.75bn NFE project, which will raise Qatar’s LNG export capacity from the current 77mn mt/yr to 110mn mt/yr.

QatarEnergy in November last year signed a 27-year sales and purchase agreement with Sinopec to supply 4mn mt/yr of LNG.