Qatar inks 22-yr LNG deal with China

Mubasher: Qatargas on Monday announced that it has signed a 22-year deal with PetroChina International Co, a unit of PetroChina Company.

Under the new long-term sale and purchase agreement (SPA), Qatargas will supply China, the world's second-biggest economy, with around 3.4 million tonnes of liquefied natural gas (LNG) per year on the back of the Asian nation’s efforts to combat air pollution.

“This agreement underscores Qatar's trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world's largest LNG producer, supplying safely and reliably across the globe,” Saad Sherida Al-Kaabi, president and CEO of Qatar Petroleum, commented.

The Qatari state-owned company will supply LNG from the Qatargas 2 project, a venture between Qatar Petroleum, Exxon Mobil Corp and Total, to different receiving terminals across China according to the deal, which extends to 2040.

The first LNG cargo is scheduled to be delivered in September, according to the company’s recent statement.

Using Qatargas fleet of 70 conventional, Q-Flex and Q-Max vessels, the agreement allows flexibility in delivering LNG to Chinese terminals including those in Dalian, Jiangsu, Tangshan and Shenzhen, the state-owned firm added.

“With China expected to become one of the world's largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term,” Khalid Bin Khalifa Al-Thani, CEO of Qatargas, said.

It is worth noting that China’s LNG imports may surge 70% to 65 million tonnes by 2020, according to consultancy SIA Energy.

Mubasher Contribution Time: 10-Sep-2018 08:51 (GMT)
Mubasher Last Update Time: 10-Sep-2018 08:57 (GMT)

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