Saad Al-Kaabi, QatarEnergy’s chief executive, told Reuters Monday that the company signed a 27-year sales and purchase agreement (Sinopec) with China. This is the longest ever in the history of liquefied gas (LNG).
Kaabi stated that today was a significant milestone in the first sales-purchase agreement for North Field East, which is 4,000,000 tonnes for Sinopec of China. This interview took place in Doha just before the signing.
He said, “It means that long-term deals exist and are important for both buyer and seller.”
Qatar shares the largest gas field in the world with Iran. The North Field is part that share of the
QatarEnergy signed earlier this year deals for North Field East. This is the first and most significant phase of
the two-phase North Field expansion plans. It includes six LNG trains which will increase Qatar’s liquefaction capability to 126m tonnes per annum by 2027, up from 77 million.
It signed agreements with partners later for North Field South expansion, the second phase.
Kaabi stated that they are happy with the Sinopec deal because they have had a long-term relationship. “This takes our relationship to new heights since we have a SPA that will last into the 2050s,” Kaabi added.
Kaabi stated that negotiations were ongoing with other buyers in China, Europe, and around the world who wanted the security of supply.
He said, “I believe the volatility of recent times has driven buyers to realize the importance of having long-term supplies.”
Kaabi stated that several entities were currently in negotiations to acquire an equity stake in the expansion of the Gulf country.
QatarEnergy maintains a 75% overall stake in the expansion and could offer up to 5% to some buyers.
According to sources, Reuters was informed in June that China’s oil majors had begun talks with Qatar to invest in North Field East.