QatarEnergy is set to secure its second large gas supply deal with China in less than a year, Reuters reported, citing sources familiar with the deal.
China National Petroleum Corp (CNPC) and QatarEnergy are expected to sign a 27-year agreement later today, under which China will purchase 4 million metric tons of LNG a year from the Gulf Arab state, two sources briefed on the matter told Reuters.
CNPC also will take an equity stake in the eastern expansion of Qatar’s North Field liquefied natural gas (LNG) project, the sources said. The stake is the equivalent of 5% of one LNG train with the capacity of 8 million tonnes per year, one of the sources said.
Asia, with an appetite for long-term sales and purchase agreements, has been ahead so far in securing gas from Qatar’s massive production expansion project.
Tuesday’s deal, first reported by the Financial Times, will be QatarEnergy’s third deal to supply LNG from the expansion to an Asian buyer.
Qatar is the world’s top LNG exporter and competition for LNG has ramped up since the start of the Ukraine war, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent’s imports.