QatarEnergy and China Petrochemical Corporation (Sinopec) have made a significant announcement, signing a partnership agreement for the North Field South expansion project. This partnership marks a historic milestone in the bilateral relations between the People’s Republic of China and the State of Qatar, as well as the collaboration between Sinopec and QatarEnergy.
As part of the partnership agreement, QatarEnergy will transfer a 5 percent interest to Sinopec in a joint venture company that holds a substantial 6 million tonnes per annum of LNG production capacity within the NFS project. In addition, a long-term sales and purchase agreement was also signed, outlining the delivery of 3 MTPA of LNG from the NFS project to Sinopec’s receiving terminals in China over a span of 27 years.
This is not the first collaboration between QatarEnergy and Sinopec. They previously signed a similar partnership agreement in Doha, which saw Sinopec become a shareholder in one of the North Field East joint venture companies involved in the critical NFE project within the global LNG industry. Importantly, these agreements do not impact the interests of other shareholders.
Moreover, the long-term LNG SPA signed between QatarEnergy and Sinopec is particularly noteworthy, as it represents the longest LNG supply agreement in the history of the industry. This demonstrates the strong and mutually beneficial relationship between the two companies, as well as their commitment to advancing the LNG sector.
Overall, these agreements highlight the remarkable progress made by QatarEnergy and Sinopec in further developing the energy industry, particularly in the field of LNG. They signify the importance of collaboration and underline the significance of Qatar’s role as a leading global supplier of LNG.
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