China National Petroleum Corp (CNPC) will soon finalise a deal to buy LNG from QatarEnergy from Qatar’s massive North Field expansion project, Reuters reported, citing three people with knowledge of the matter.
This would be the second such deal between both countries as Beijing looks to diversify its fuel sources in a drive to replace coal and cut carbon emissions.
CNPC’s talks follow a deal announced last November by China’s Sinopec, in which QatarEnergy agreed to supply 4 million tonnes of LNG annually for 27 years, the longest duration LNG supply contract ever signed by Qatar.
State-controlled CNPC, China’s top gas importer, last year also stepped up gas imports from Russia, by pipeline and tanker, snapping up supply that was no longer going to Europe due to sanctions amid Moscow’s war on Ukraine.
QatarEnergy last year signed five deals with international majors for the North Field project, a two-phase expansion plan that will boost Qatar’s liquefaction capacity to 126 million tonnes per year by 2027 from 77 million tonnes.
TotalEnergies, ExxonMobil, ConocoPhillips, ENI and Shell signed a joint-venture agreement with QatarEnergy that includes an equity investment in liquefaction export facilities.