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Annual supply of 3 million tons of LNG! Sinopec and Qatar Energy Company sign another major cooperation agreement

2023-11-04 19:36:11 Source: Shanghai Securities News · China Securities Network Author: Chen Qijue

　　Shanghai Securities News China Securities Network News (Reporter Chen Qijue) The reporter learned from Sinopec on November 4 that during the 6th China International Import Expo, Sinopec and Qatar Energy Company signed an integrated cooperation for the second phase of the Northern Gas Field Expansion Project (NFS).

The agreement includes a 27-year long-term purchase and sale agreement for liquefied natural gas (LNG) and an upstream equity participation agreement. According to the agreement, Qatar Energy will supply 3 million tons of LNG to Sinopec every year and transfer 5% of its equity in the joint venture to Sinopec (equivalent to 1.875% of the NFS project). 

This is the third long-term LNG purchase and sale agreement signed by the two parties, and also the second integrated cooperation project reached by the two parties after the first phase of the northern gas field expansion project.

　　The signing ceremony was held at the Sinopec Theme Forum of the Sixth China International Import Expo.

　　Ma Yongsheng, chairman of Sinopec, said that this cooperation is another fruitful result in promoting the strategic alignment between China’s “One Belt, One Road” initiative and Qatar’s “2030 National Vision”. Qatar Energy is the world’s leading LNG producer and one of Sinopec’s most important partners. Cooperation with Qatar Energy Company will help further optimize China’s energy consumption structure, build a new energy system, and help my country achieve its “double carbon” goal. It is hoped that both parties will continue to explore all-round cooperation on the basis of existing good cooperation and achieve a higher level of win-win development.

　　”Sinopec is one of our cherished partners, and the two parties have a good foundation for cooperation. We are very happy to see Qatar Energy Company and Sinopec continue to expand cooperation, and look forward to more cooperation between the two parties in the energy field in the future.” Qatar Energy Affairs Kaabi, Minister of State and President and CEO of Cal Energy, said that Sinopec is an international energy and chemical company with growing influence. It has a complete industrial chain, continues to expand diversified businesses, and continues to promote the research and development and application of green and low-carbon technologies. Qatar is the world’s largest liquefied natural gas producer, and cooperation between the two parties will shape a new global energy landscape.

　　Qatar is one of the world’s leading exporters of liquefied natural gas. The northern gas field expansion project is currently the world’s largest new liquefied natural gas project. The second phase of the northern gas field expansion project will build two new LNG production lines with a production capacity of 16 million tons per year.

　　Sinopec and Qatar Energy Company have a good foundation for cooperation. In 2021, the two parties signed a 2 million tons/year, 10-year long-term LNG purchase and sales agreement; in 2022, the two parties signed a 4 million tons/year, 27-year long-term LNG purchase and sales agreement.