China signs major LNG deal with Qatar as Beijing’s Gulf push continues

China signs major LNG deal with Qatar as Beijing’s Gulf push continues

June 20, 2023









Qatar signed a major liquified natural gas (LNG) deal with China on Tuesday, further strengthening the Gulf state’s energy ties to the People’s Republic.

QatarEnergy inked a 27-year agreement with the China National Petroleum Corporation (CNPC) to provide 4 million tons of LNG per year. CNPC will also receive a 5% interest in Qatar’s North Field East expansion project. The stake is equivalent to one LNG “train” with a capacity of 8 million tons per year, according to a press release. LNG trains are facilities in which gas is converted into liquid form.

Qatari Energy Minister Saad Al-Kaabi said they are pleased to “build on the excellent relations between the People’s Republic of China and the State of Qatar.” Kaabi is also president and CEO of QatarEnergy.

QatarEnergy and CNPC are both state-owned entities.

Why it matters: The deal constitutes the second major gas deal between Qatar and China in the past year. Last November, QatarEnergy and the Chinese oil giant Sinopec likewise signed a 27-year supply agreement for 4 million tons of LNG annually.

The QatarEnergy-Sinopec deal came as Europe sought to secure Qatari gas in response to the Russian invasion of Ukraine. Shortly after that