Sinopec and Qatar Energy sign another major LNG order

On November 4, during the Sixth China International Import Expo, Sinopec and Qatar Energy signed an integrated cooperation agreement for the second phase of the Northern Gas Field Expansion Project (NFS), including a 27-year liquefaction Natural gas (LNG) long-term purchase and sale agreement and upstream equity participation agreement.

According to the agreement, Qatar Energy will supply 3 million tons of LNG to Sinopec every year and transfer 5% of its equity in the joint venture to Sinopec (equivalent to 1.875% of the NFS project). This is the third long-term LNG purchase and sale agreement signed by the two parties, and also the second integrated cooperation project reached by the two parties after the first phase of the northern gas field expansion project.

Qatar is one of the world’s leading exporters of liquefied natural gas. The northern gas field expansion project is currently the world’s largest new LNG project. The second phase of the northern gas field expansion project will build two new LNG production lines with a production capacity of 16 million tons per year.

Sinopec and Qatar Energy Company have a good foundation for cooperation. In 2021, the two parties signed a 2 million tons/year, 10-year long-term LNG purchase and sales agreement; in 2022, the two parties signed a 4 million tons/year, 27-year long-term LNG purchase and sales agreement.