The Deal Will See QatarEnergy Supply 4 million tons of LNG to Sinopec Every year, and the Two Sides Carry out Integrated Cooperation on the Expansion Project of the Northern Gas Field
BEIJING, Nov. 22, 2022 – China Petroleum & Chemical Corporation (HKG: 0386, "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 parties will work together on Qatar's North Field Expansion Project ("the Project").
The 27-year long-term LNG purchase and sale agreement is an important part of the integrated cooperation between the two sides. Sinopec Chairman Ma Yongsheng and Qatari Minister of State for Energy Affairs, President and CEO of QatarEnergy, H.E. 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 favorable 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 said. "The LNG supply will help meet the demand for natural gas in the Chinese market, but also further optimize China's energy mix while enhancing the security, stability, and reliability of energy supply."
"We are delighted to have reached this agreement, which will further strengthen the excellent bilateral relationship between China and Qatar," said H.E. Mr. 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.