News ID: 325532
Published: 0452 GMT November 21, 2022

Qatar signs 27-year deal with China as LNG competition heats up

Qatar signs 27-year deal with China as LNG competition heats up
QatarEnergy CEO and Qatar's Minister of Energy Saad al-Kaabi attends a signing ceremony with Sinopec, in Doha, Qatar, on November 21, 2022.


REUTERS - QatarEnergy signed a 27-year deal to supply China's Sinopec with liquefied natural gas (LNG), the longest such LNG agreement so far as volatile markets drive buyers to seek long-term deals.

Following Russia's military operation in Ukraine in February, competition for LNG has become intense, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent's imports.

"Today is an important milestone for the first sales and purchase agreement (SPA) for North Field East project, it is 4 million tonnes for 27 years to Sinopec of China," QatarEnergy chief Saad al-Kaabi told Reuters in Doha, shortly before the deal signing.

 "It signifies long-term deals are here and important for both seller and buyer," he said, adding that the deal was the LNG sector's largest single sales and purchase agreement on record.

The North Field is part of the world's biggest gas field that Qatar shares with Iran, which calls its share South Pars.



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