QatarEnergy signed the biggest long-term liquefied natural gas (LNG) contract of 2021 with CNOOC in September 2021, a report by GlobalData revealed.
The Qatari provider will supply CNOOC with 3.5 million tonnes per annum of LNG from 2022 to 2036 from the country’s Ras Laffan III liquefaction terminal.
According to GlobalData’s report, the number of long-term contracts for LNG grew in 2021, following a drop in 2020 when short-term spot contracts were more favoured. The firm found that 23 long-term contracts were signed by key purchasing companies in 2021, compared to 10 in 2020.
“Buyers are, once again, looking towards long-term contracts to hedge price volatility and ensure guaranteed supply. The trend is expected to continue in 2022 as LNG prices in key markets such as Asia and Europe continue to be very high,” Bhargavi Gandham, oil and gas analyst at GlobalData said in a statement.
The report also found that China-based Sinopec signed the most long-term LNG contracts in 2021, gaining five million tonnes of imported LNG per annum.
“In terms of LNG purchase, the majority of long-term LNG contracts completed by Sinopec were signed with Venture Global LNG as part of China’s efforts to reduce the country’s carbon emissions. The country needs to substantially increase natural gas share in its energy mix in order to achieve its goal of becoming carbon neutral by the year 2060,” Bhargavi added.
Vitol Group signed the second most long-term LNG contracts, gaining 4.3 million tonnes of imported LNG per annum, with Royal Dutch Shell taking third spot, with four million tonnes of imported LNG per annum.
Tellurian Investments sold the most LNG, at nine million tonnes per annum. The firm’s LNG will be supplied by the Driftwood terminal in Louisiana.
Qatargas sold the second most LNG in 2021 at 7.3 million tonnes per annum.
“State-owned companies in Qatar have mostly signed long-term LNG contracts in 2021 to supply key demand centres in Asia such as China and South Korea. These companies can sign more contracts in 2022 as the global economy recovers driving further LNG demand,” Bhargavi concluded.
