Qatar LNG deal with China includes Chinese investment in field expansion project
ALBAWABA – Qatar Energy is set to sign the second major liquefied natural gas Qatar LNG deal of the year with a state-owned Chinese company, which would last for 27 years, Bloomberg reported Tuesday.
The deal will reportedly be signed Tuesday, June 20, an unidentified source told Bloomberg.
China’s motives behind signing these deals are to secure the country’s long-term energy security, according to Reuters.
China National Petroleum Corporation (CNPC) will seal the 27-year deal for 4 million tons annually with Qatar Energy.
Conveyance will begin in 2026 and CNPC will assume 5 percent equity stake in a production train at Qatar’s expansion project in North Field East, Bloomberg’s source explained.
This deal, first reported by the Financial Times, will be Qatar Energy's third deal to supply LNG from the expansion project to an Asian buyer.
In April, China's Sinopec (China Petroleum & Chemical Corp.) became the first Asian energy company to become a "value-added" partner in the project, according to Reuters.
Qatar Energy also signed on equity partnerships on the project with international oil companies, having announced it will retain a 75 percent stake in the expansion project. The North Field expansion works will cost at least $30 billion, including the construction of liquefaction export facilities, Reuters reported.
Qatar Energy has also signed equity partnerships on the project to international oil companies, but has said it plans to retain a 75% stake in the North Field expansion, which will cost at least $30 billion including construction of liquefaction export facilities.
