QatarEnergy has signed a 27-year deal to supply China’s Sinopec with liquefied natural gas (LNG).
This is the longest LNG agreement so far, Reuters news report said.
“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,” said QatarEnergy chief Saad al-Kaabi.
The North Field is part of the world’s biggest gas field that Qatar shares with Iran, which calls its share South Pars.
QatarEnergy earlier this year signed five deals for North Field East (NFE), the first and larger of the two-phase North Field expansion plan, which includes six LNG trains that will ramp up Qatar’s liquefaction capacity to 126 million tonnes per year by 2027 from 77 million.
It later signed contracts with three partners for North Field South (NFS), the second phase of the expansion.
Qatar is already the world’s top LNG exporter and its North Field expansion project will boost that position and help guarantee long-term supplies of gas to Europe as the continent seeks alternatives to Russian flows.
The deal was signed on an ex-ship basis, meaning QatarEnergy will provide the shipping and delivery of the LNG.