North Field South Project : QatarEnergy forges new LNG partnership with Sinopec
In a pivotal agreement poised to bolster the LNG industry, QatarEnergy has inked a partnership accord with China Petrochemical Corporation (Sinopec) for the North Field South (NFS) expansion project. The deal, signed in Shanghai by QatarEnergy’s Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, and Sinopec’s Chairman, Dr. MA Yong-sheng, entails QatarEnergy divesting a 5% stake to Sinopec in a joint venture with an annual LNG production capacity of 6 million tons.
Long-Term LNG Supply Deal to Sinopec Marks a Historic Agreement
In conjunction with the partnership, a long-term sales and purchase agreement (SPA) was also ratified, under which QatarEnergy will deliver 3 million tons per annum (MTPA) of LNG from the NFS project to Sinopec’s receiving terminals in China. This 27-year agreement is set to reinforce the LNG supply chain and energy security in China, illustrating the strategic and enduring ties between the two corporations.
QatarEnergy to Supply Sinopec with 3 MTPA of LNG in Landmark 27-Year Deal. Photo courtesy of QatarEnergy.
Continued Cooperation Following Previous Landmark LNG Agreements
This new contract builds upon a series of agreements between QatarEnergy and Sinopec, furthering their cooperation in the global LNG sector. It follows a similar deal signed in April and another SPA from November 2022, which was recognized as the longest LNG supply agreement in the industry’s history, with a 4 MTPA commitment over the same duration. The recent agreement underscores the mutually beneficial relationship between the State of Qatar and the People’s Republic of China, alongside the robust partnership between Sinopec and QatarEnergy.
These agreements between QatarEnergy and Sinopec mark historic milestones, reflecting the strength of Qatar-China bilateral relations and underpinning the significance of the North Field South expansion in the global energy landscape. The strategic partnership and the extensive LNG SPA testify to the role of the North Field expansion as a cornerstone in meeting global energy demand and strengthening energy cooperation across continents.