The Chinese state-owned energy group Sinopec has signed a 27-year supply and purchase agreement (SPA) with QatarEnergy for the supply of 3 Mt/year of LNG from the North Field South (NFS) expansion project in Qatar. A partnership agreement was also signed, under which QatarEnergy will transfer a 5% interest to Sinopec in a joint venture company that owns the equivalent of 6 Mt/year of LNG production capacity in the NFS project.
This SPA agreement is the third signed between Sinopec and QatarEnergy, as the two companies signed another 27-year LNG supply deal in November 2022 (for 4 Mt/year) and a 10-year SPA in 2021. In addition, in April 2023, the two companies also signed a partnership agreement for Sinopec to purchase a 5% stake in the North Field East (NFE) LNG expansion project.
The Qatari group also signed 27-year LNG supply agreements with China’s CNPC (4 Mt/year) in June 2023.