Qatar strikes second big LNG supply deal with China

Qatar strikes second big LNG supply deal with China

Doha: Qatar on Tuesday secured its second large gas supply deal with a Chinese state-controlled company in less than a year, putting Asia clearly ahead in the race to secure gas supplies from Doha’s massive production expansion project. China National Petroleum Corporation (CNPC) and QatarEnergy signed a 27-year agreement, under which China will purchase 4 million metric tonnes of LNG a year from the Gulf Arab state. CNPC will also take an equity stake in the eastern expansion of Qatar’s North Field liquefied natural gas (LNG) project, QatarEnergy chief Saad Al Kaabi said at the signing. The stake is the equivalent of 5 per cent of one LNG train with the capacity of 8 million tonnes a year. “Today we are signing two agreements that will further enhance our strong relations with one of the most important gas markets in the world and key market for Qatari energy products,” Kaabi said. In an identical deal, QatarEnergy sealed a 27-year supply agreement with China’s Sinopec in November for 4 million tonnes a year. The state-owned Chinese gas giant also took an equity stake equivalent to 5 per cent of one LNG train of 8 million tonnes a year capacity. Asia, with