Reuters reported that Qatar Energy is ready to sign a new 27-year gas deal with China National Petroleum Corporation.
China National Petroleum Corporation (CNPC) and QatarEnergy are expected to sign a 27-year agreement, which will allow China to purchase 4 million metric tons of liquefied natural gas (LNG) a year, Reuters reported today, 20 June.
Sources familiar with the deal told Reuters that CNPC also will take an equity stake in the eastern expansion of Qatar’s North Field LNG project. The stake is the equivalent of 5 percent of one LNG train with a capacity of 8 million tonnes per year.
Despite selling equity shares in the North Field expansion to foreign firms, QatarEnergy plans to retain a 75 percent stake in the project, which will cost at least $30 billion, including the construction of liquefaction export facilities.
In April, China’s Sinopec signed a deal to become a “value-added” partner in Qatar’s North Field expansion project.
The project, with a total investment cost of $28.75 billion, aims to raise Qatar’s LNG export capacity from the current 77 million metric tonnes per annum (MTPA) to 110 MTPA, making it one of the largest LNG projects in the world, Sinopec said in a statement.
“The cooperation will help Sinopec optimize the energy consumption mix in China and secure a long-term and reliable clean energy supply to the nation. The partnership represents another model of bilateral cooperation between China and Qatar,” Sinopec said.
China is seeking increased imports of LNG from Qatar, the world’s top LNG supplier, in part to reduce dependence on LNG imports from the United States, the world’s second-largest supplier.
Russian ambassador to Kenya, Dmitry Maksimychev, said that the West is robbing Africa, as commodities produced in Africa are priced much lower than the end products.
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