Qatar Signs 27-year Gas Supply Deal with China

Qatar has inked a long-term agreement to supply China with 6 million tons of liquefied natural gas (LNG) annually from the South-North field, with 3 million tons of this supercooled fuel to be supplied each year over a span of 27 years.

The agreement between the two nations was formalized on Friday, marking a long-term sales and purchase agreement to supply 3 million tons of LNG annually from the expansion project of the South-North field to Sinopec’s receiving terminals in China over the next 27 years, according to a statement issued by Qatar Energy.

Moreover, it was agreed that Sinopec will acquire a 5% stake in a joint venture that has an equivalent of 6 million tons annual production capacity from the South-North field's LNG project.

This agreement marks the second of its kind with the Chinese company since Sinopec became a partner in one of the joint ventures owning the Northeast field development project last April.