QatarEnergy has signed a 27-year Sale and Purchase Agreement (SPA) with the Chinese state-owned oil and gas company Sinopec for the supply of 4 Mt/year (5.5 bcm/year) of LNG to China. The contracted LNG volumes will be supplied from QatarEnergy’s 32 Mt/year (44 bcm/year) North Filed East (NFE) LNG project, which is located in the Persian Gulf north of Qatar, and will be delivered to Sinopec’s receiving terminals in China.
This agreement is the second LNG SPA between QatarEnergy and Sinopec, following the 10-year SPA signed in March 2021 for the supply of 2 Mt/year (2.8 bcm/year) to China.
In June and July 2022, QatarEnergy selected five companies to join the NFE LNG project as partners, including France’s TotalEnergies, Italy’s Eni, the UK’s Shell, as well as the USA’s Exxon Mobil and ConocoPhillips.
As of end-2021, Qatar had the world’s third largest gas reserves with 23,800 bcm, behind Russia and Iran.