Qatar Reached Long-Term Natural Gas Supply Deal with China

SEATTLE (Oil Monster): According to Qatar’s Energy Minister, the country has entered into a long-term natural gas supply agreement with China National Petroleum Corporation (CNPC). The signing ceremony was held in Doha- the capital city of Qatar.

The Ministry noted that this is the second liquefied natural gas (LNG) sale and purchase agreement with China for gas from the North Field East Expansion Project. It must be noted that a similar deal was signed with Chinese Sinopec almost seven months before. The $60 million agreement was towards supply of 4 million tons per annum of LNG starting from 2026.

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North Field is believed to hold the world’s biggest natural gas reserves. The expansion of the exploitation of the reserves will boost Qatar’s LNG production by more than 60% to approximately 126 million tons of LNG per annum by 2027.

As per the agreement Qatar has agreed to supply a total of four million tons per annum of natural gas from the North Field East Expansion Project to China over a period of 27 years, said Saad al-Kaabi, CEO, Qatar Energy.

The Asian countries have continued to remain as the primary destinations of Qatar’s natural gas exports, despite high demand from European countries since the Russian invasion of Ukraine.