Sinopec secures one of biggest-ever LNG deals with Qatar

Sinopec secures one of biggest-ever LNG deals with Qatar

China’s Sinopec has secured one of the biggest-ever liquefied natural gas deals, signing a 27-year agreement to purchase 4mn tonnes a year of the fuel from QatarEnergy.

The agreement announced on Monday by the state-owned groups comes as Europe races to secure alternative supplies of natural gas in the wake of Russia’s invasion of Ukraine.

The deal “marks the longest gas supply agreement in the history of the LNG industry”, said Saad Sherida al-Kaabi, QatarEnergy’s chief executive and the Gulf state’s energy minister.

He added that it would “further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar and help meet China’s growing energy needs”.

The agreement follows a shorter 10-year LNG purchase arrangement signed in 2021 between QatarEnergy and Guangdong Energy Group Natural Gas Company. Company executives said Monday’s move was likely to be followed by further agreements.

“Sinopec attaches great importance to the co-operation with QatarEnergy, who we regard as a strategic, long term and all-round partner, and we are expecting more co-operation fruits to come,” said Ma Yongsheng, Sinopec’s chair.

Germany has also been pursuing Qatari LNG imports, and the two countries signed an energy partnership in May. However, European nations have hesitated over longer-term deals