The Chinese state-owned energy company Sinopec has signed an agreement with QatarEnergy to purchase a 5% stake in the 32 Mt/year North Field East LNG expansion project located offshore Qatar. QatarEnergy will transfer to Sinopec the interest in the equivalent of one NFE train with a capacity of 8 Mt/year. The agreement will not affect the participating interests of any of the other shareholders.
This new agreement follows a previous deal made in November 2022, when QatarEnergy signed a 27-year Sale and Purchase Agreement (SPA) with Sinopec for the supply of 4 Mt/year (5.5 bcm/year) of LNG to China.
In June and July 2022, QatarEnergy selected five partners for its 32 Mt/year North Field East LNG project, namely the UK’s Shell, France’s TotalEnergies and Italy’s Eni, as well as the USA’s Exxon Mobil and ConocoPhillips. Qatar is partnering with international energy companies in the first phase of the US$30bn expansion of its North Field project, which was launched in 2019. It is currently under construction and is set to increase Qatar's total LNG export capacity from 77 Mt/year to around 110 Mt/year by 2027. The upstream part of the project will develop the field with 8 platforms, 80 wells and gas pipelines connecting to the onshore plant.
Qatar is also developing the 16 Mt/year North Field South LNG project, for which QatarEnergy has partnered with Shell, TotalEnergies and ConocoPhillips.
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