QatarEnergy Picks CPC as NFE Partner, Inks SPA for 4 MTPA of LNG Over 27 Years

QatarEnergy entered into definitive agreements with CPC Corporation, Taiwan (CPC), encompassing the long-term provision of LNG to CPC and collaboration in the North Field East LNG expansion project (NFE). As per the agreements reached, the two parties have concluded an LNG Sales and Purchase Agreement (SPA) concerning the delivery of four million tons per annum (MTPA) of LNG from the NFE project to CPC, spanning a period of 27 years.

Additionally, both parties executed a share sale and purchase agreement, through which QatarEnergy will convey to CPC a 5% stake in one NFE train, equivalent to eight MTPA capacity. As a result of this transaction, CPC will join as a partner in the NFE project, ensuring that the participating interests of all other shareholders remain unchanged.

The agreements were endorsed by His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, alongside Mr. Shun-Chin Lee, Chairman of CPC Corporation, Taiwan, during a special ceremony hosted at QatarEnergy’s headquarters in Doha. Senior executives from both organizations were present at the event.

Minister Al-Kaabi warmly welcomed CPC as a valuable partner in the NFE project, expressing, “We anticipate strengthening our longstanding relationship with CPC, spanning over three decades, and reaffirming our steadfast dedication to our customers and partners worldwide.”

Minister Al-Kaabi conveyed his gratitude and appreciation to the teams from CPC and QatarEnergy for their diligent efforts and commitment in finalizing the agreements.

Mr. Shun-Chin Lee emphasized, "QatarEnergy, as the foremost player in the global LNG market, has played a pivotal role in securing Taiwan's domestic gas market for decades. CPC's equity acquisition in the NFE project and the new LNG SPA will bolster the collaborative bond between our two companies."

The NFE project forms an integral component of the comprehensive North Field LNG expansion program, encompassing the North Field South and North Field West projects. Collectively, these initiatives will elevate Qatar's LNG production capacity from the current 77 MTPA to 142 MTPA by 2030.

QatarEnergy, formerly known as Qatar Petroleum (QP), serves as the government-owned entity overseeing all aspects of Qatar's oil and gas endeavors. Its responsibilities span exploration, production, refining, transportation, and storage. The company manages the country's oil pipeline network, transporting crude from diverse fields to the main refinery and export hubs. Additionally, QatarEnergy operates an extensive offshore pipeline system, facilitating the transport of crude from offshore fields to Halul Island for processing and export. Most of the oil onshore is routed to Umm Said for either refining or export. Qatar's key export terminals are situated at Umm Said, Halul Island, and Ras Laffan. Refining activities take place at two main facilities: the QatarEnergy Refinery in Umm Said and the Laffan Refinery in Ras Laffan.