QatarEnergy to sell Sinopec 4 million tpy of LNG for 27 years

QatarEnergy has agreed to sell China Petroleum & Chemical Corp. (Sinopec) 4 million tonnes/year (tpy) of LNG for 27 years. The contracted LNG will be supplied from QatarEnergy’s North Field East (NFE) expansion project and will be delivered to Sinopec terminals in China.

The two companies signed a 10-year agreement in March 2021 for the supply of 2 million tpy to China.

QatarEnergy describes the deal as the first long-term LNG offtake agreement from the NFE expansion project. The company has formed eight international partnerships for the North Field East and North Field South (NFS) projects, expected to come online in 2026 and 2027, respectively (OGJ Online, Oct. 31, 2022).

QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers and says it expects that number to grow to almost 100.