Qatar Energy Sells 4 million tons of LNG to China for 27 years with CNPC as NFE Partner

Doha [Qatar]: QatarEnergy has inked definitive agreements with China National Petroleum Corporation (CNPC) for the long-term supply of Liquified Natural Gas (LNG) to China and partnership in the North Field East LNG expansion project (NFE). CNPC and Qatar have signed an agreement that includes a 27-year long-term LNG Sales and Purchase Agreement (SPA). As part of the deal, 4 million tonnes of liquefied natural gas per annum from the NFE project will be delivered to CNPC's receiving terminals in China. This marks a significant milestone for the LNG sector and underscores the strong partnership between these two. QatarEnergy has announced the transfer of a 5% share in one NFE train with an 8 million tonnes per annum capacity to CNPC. This agreement, executed through a share sale and purchase deal, will make CNPC a partner in the NFE project while preserving the interests of other venture shareholders.

In his remarks at the signing ceremony, His Excellency Minister Al-Kaabi welcomed CNPC as a valuable partner in the NFE project. He expressed his pleasure in embarking on this partnership with CNPC and building on the excellent relations between the People's Republic of China and the State of Qatar. Dedication to clients and collaborators is unchanging, and we share a vision for a sustainable future powered by a cleaner, more environmentally friendly energy source that will spur significant socio-economic progress. These agreements illustrate this commitment.

In a recent development, H.E. Minister Al-Kaabi conveyed his heartfelt gratitude to the hardworking teams at CNPC and QatarEnergy for their unwavering dedication in successfully concluding the agreements. The Minister also acknowledged the invaluable support and guidance extended by His Highness the Amir Sheikh Tamim bin Hamad Al Thani towards the energy sector and expressed sincere appreciation for the same.

In regard to the NFE project, CNPC's Chairman, Mr. Dai Houliang, expressed that the collaboration between CNPC and QatarEnergy is a significant accomplishment and exemplifies the strategic consensus of our countries' leaders. This milestone signifies the establishment of a strategic synergy between China's "Belt and Road" Initiative and Qatar's National Vision 2030, providing a strong foundation for energy cooperation over the next three decades. Moving forward, CNPC aims to actively engage with QatarEnergy in exploring comprehensive cooperation opportunities throughout the Hydrocarbon industry chain and other areas, such as green and low carbon energies, to foster a stable, long-term, and multi-dimensional strategic partnership.

Qatar is making significant strides in expanding its liquefied natural gas (LNG) production capacity. The country's North Field East Project (NFE) is currently underway and aims to increase LNG production from the current 77 million tons per year to 110 million tons per year. NFE marks the initial stage of Qatar's proposed LNG expansion plan. Qatar's LNG production capacity will reach an impressive 126 million tons per year with the North Field South Project (NFS), the second phase of the project following a current capacity of 110 million tons per year.