China seals one of the biggest LNG deals ever with Qatar

China seals one of the biggest LNG deals ever with Qatar

China signed a landmark $60 billion agreement for purchases of liquefied natural gas from Qatar, as the world’s second-largest economy looks to bolster its energy security for decades. Qatar Energy will send Sinopec 4 million tonnes of LNG a year starting in 2026, the companies announced in a virtual ceremony on Monday. The deal will last for 27 years, making it China’s longest LNG supply agreement to date, according to data from BNEF. It’s also one of the country’s biggest in terms of volume. Countries around the world are rushing to secure the power-plant and heating fuel from major exporters like Qatar and the US, causing prices to climb. The global LNG market is all but maxed out in terms of supply and there is little new production coming online before 2026. Europe is trying to replace Russian pipeline gas with LNG, though talks with Qatar have stalled amid reluctance from the likes of Germany to commit to long-term contracts. Many EU governments want to phase out fossil fuels and believe LNG deals would work against their climate goals. While China’s LNG imports have slumped this year on the government’s strict zero-Covid policy, demand is expected to rebound as soon