China’s Sinopec acquires stake in Qatar gas project

China’s Sinopec acquires stake in Qatar gas project

April 12, 2023









The Chinese oil giant Sinopec acquired a stake in a field owned by Qatar’s state-owned energy firm on Wednesday as Beijing increases its influence in the region.

The official Qatar News Agency reported that QatarEnergy will transfer a 5% stake in its North Field East. The stake has a capacity of eight million tons per year, according to the agency.

Background: QatarEnergy, formerly Qatar Petroleum, is majority owned by the government of Qatar. Part of the company is also listed on the Qatar Stock Exchange. In 2018, QatarEnergy announced that foreign investors could hold up to 49% of the shares of QatarEnergy subsidiaries that are listed on the exchange. 

QatarEnergy’s North Field East Ras Laffan on Qatar’s Gulf coast is a liquified natural gas (LNG) field.

Why it matters: China is rapidly making inroads into the Middle East. In March, China brokered the agreement for Iran and Saudi Arabia to resume relations. Also last month, the Chinese firm Xinxing Ductile Iron Pipes Corporation signed an agreement to build a $2 billion steel factory in Egypt’s Suez Canal. 

China is especially interested in developing its energy relations with Middle Eastern countries, including Qatar. In November, QatarEnergy signed a