Asia now clearly leads the race to secure gas supplies from Doha's mammoth production expansion project after Qatar on Tuesday signed its second significant gas supply contract with a Chinese state-controlled enterprise in less than a year.
A 27-year agreement between QatarEnergy and China National Petroleum Corporation (CNPC) stipulates that China will purchase 4 million metric tonnes of LNG from the Gulf Arab nation each year.
According to QatarEnergy CEO Saad al-Kaabi, CNPC will also acquire an ownership stake in the eastern extension of Qatar's North Field LNG project.
The share is equal to 5% of an LNG train with an annual production capacity of 8 million tonnes.
"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.
Similar to this agreement, QatarEnergy signed a 27-year supply contract for 4 million tonnes annually with Sinopec in November. The state-owned Chinese gas giant also acquired an equity holding worth 5% of one LNG train with an annual capacity of 8 million tonnes.
Asia has overtaken Europe in securing supply from Qatar's two-phase development plan, which would increase its liquefaction capacity to 126 million tonne a year by 2027 from 77 million. Asia has a desire for long-term sales and purchase agreements.
The agreement reached on Tuesday will be QatarEnergy's third to provide LNG from the expansion to an Asian customer.
According to Kaabi, negotiations are also underway with other Asian purchasers for equity participation in the development.
The competition for LNG has increased since the start of the conflict in Ukraine, and Europe in particular needs a lot of LNG to help replace Russian pipeline gas, which used to account for roughly 40% of the continent's imports. Qatar is the world's biggest supplier of LNG.
There were reports earlier stated that CNPC was close to sealing a deal to purchase LNG from QatarEnergy from the North Field expansion project for a period of almost 30 years.
As previously stated, Kaabi, the energy minister of the Gulf state and CEO of QatarEnergy, suggested that the company might provide "value-added partners" up to 5% of the gas trains connected to its North Field expansion.
Sinopec, a Chinese energy giant, became the first "value-added" partner in the project in April.
Although it has stated that it intends to keep a 75% interest in the North Field expansion, which would cost at least $30 billion and include the construction of liquefaction export facilities, QatarEnergy has also inked equity partnerships on the project with foreign oil corporations.
Chinese national energy corporations increasingly view Qatar as a safer target for resource investment as Beijing's relations with the United States and Australia, Qatar's two major LNG export competitors, deteriorate.
(Source:www.aljazeera.com)
A 27-year agreement between QatarEnergy and China National Petroleum Corporation (CNPC) stipulates that China will purchase 4 million metric tonnes of LNG from the Gulf Arab nation each year.
According to QatarEnergy CEO Saad al-Kaabi, CNPC will also acquire an ownership stake in the eastern extension of Qatar's North Field LNG project.
The share is equal to 5% of an LNG train with an annual production capacity of 8 million tonnes.
"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.
Similar to this agreement, QatarEnergy signed a 27-year supply contract for 4 million tonnes annually with Sinopec in November. The state-owned Chinese gas giant also acquired an equity holding worth 5% of one LNG train with an annual capacity of 8 million tonnes.
Asia has overtaken Europe in securing supply from Qatar's two-phase development plan, which would increase its liquefaction capacity to 126 million tonne a year by 2027 from 77 million. Asia has a desire for long-term sales and purchase agreements.
The agreement reached on Tuesday will be QatarEnergy's third to provide LNG from the expansion to an Asian customer.
According to Kaabi, negotiations are also underway with other Asian purchasers for equity participation in the development.
The competition for LNG has increased since the start of the conflict in Ukraine, and Europe in particular needs a lot of LNG to help replace Russian pipeline gas, which used to account for roughly 40% of the continent's imports. Qatar is the world's biggest supplier of LNG.
There were reports earlier stated that CNPC was close to sealing a deal to purchase LNG from QatarEnergy from the North Field expansion project for a period of almost 30 years.
As previously stated, Kaabi, the energy minister of the Gulf state and CEO of QatarEnergy, suggested that the company might provide "value-added partners" up to 5% of the gas trains connected to its North Field expansion.
Sinopec, a Chinese energy giant, became the first "value-added" partner in the project in April.
Although it has stated that it intends to keep a 75% interest in the North Field expansion, which would cost at least $30 billion and include the construction of liquefaction export facilities, QatarEnergy has also inked equity partnerships on the project with foreign oil corporations.
Chinese national energy corporations increasingly view Qatar as a safer target for resource investment as Beijing's relations with the United States and Australia, Qatar's two major LNG export competitors, deteriorate.
(Source:www.aljazeera.com)
