Sinopec and QatarEnergy Sign Third Long-term LNG Supply Deal for 27 Years

Deal to include cooperation on expanded Gulf North Field project with 3 million metric tons of LNG supplied annually; Sinopec also acquires 5% stake in joint venture increasing LNG production capacity.

• State-owned Chinese firm Sinopec has signed a new 27-year liquefied natural gas (LNG) supply and purchase agreement with QatarEnergy, marking the third long-term supply deal between the two companies.
• Under the deal, the two entities will cooperate on the second phase of the Gulf Arab state's North Field expansion project. This project will supply 3 million metric tons of LNG per year to Sinopec.
• The agreement additionally includes a partnership where QatarEnergy will transfer a 5% interest in a joint venture company to Sinopec. This company controls the equivalent of 6 million tons per year of LNG production capacity in the North Field South project.
• The deal was finalized at the China International Import Expo in Shanghai and follows a 10-year LNG purchase and sales agreement in 2021, and another 27-year deal last year.
• The North Field, shared between Qatar and Iran, is the world's largest gas field and its expansion plan will enhance Qatar's liquefaction capacity from 77 million to 126 million metric tons per year by 2027.

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