China in advanced talks with Qatar for gas stakes worth billions

China in advanced talks with Qatar for gas stakes worth billions

China’s energy majors are in advanced discussions to invest billions of dollars in Qatar’s massive liquefied natural gas (LNG) expansion project.

State-owned China National Petroleum Corp. and Sinopec are expected to invest in Qatar’s $29 billion North Field East project, said a person familiar with the situation, who asked not to be identified discussing a private matter. The companies are looking to procure LNG under long-term contracts, two other people familiar with the matter said. Reuters earlier reported the news.

Spokespeople for CNPC and Sinopec weren’t immediately available to comment. State-energy producer Qatar Energy didn’t respond to a request for comment.

LNG importers are rushing to secure supply deals as a global shortage is expected to persist for much of the decade amid Europe’s moves to curb Russian pipeline gas. Spot prices for gas in Asia and Europe surged to a record soon after Russia invaded Ukraine, exacerbating a supply crunch for the power plant and heating fuel.

Officials from Qatar Energy came to Singapore earlier this month to meet with Chinese companies, according to two other people. They met with companies including CNPC’s PetroChina and Sinopec, as well as Cnooc Ltd. and Beijing Gas Group Co., regarding long-term LNG deals, the people