Sources informed Reuters that Qatar would sign its second significant gas supply deal with a Chinese state-owned corporation in less than a year.
Two sources informed Reuters that China National Petroleum Corporation (CNPC) and QatarEnergy would sign a 27-year agreement on Tuesday to buy 4 million metric tons of LNG from the Gulf Arab state.
According to sources, CNPC will invest in Qatar’s eastern LNG expansion. One source indicated the investment is 5% of one LNG train with an eight million-ton-per-year capacity.
QatarEnergy signed an identical 27-year supply agreement with Sinopec for 4 million tons a year in November. The state-owned Chinese gas firm also bought 5% of an eight million-ton-a-year LNG train.
Asia has been ahead in acquiring Qatar’s huge production expansion project’s gas.
QatarEnergy’s third LNG sale to an Asian buyer from the expansion was announced Tuesday by the Financial Times.
Since the Ukraine crisis began, Europe has needed massive amounts of Qatar’s LNG to replace Russian pipeline gas, which made up over 40% of its imports.
Reuters claimed CNPC was close to finalizing a 30-year LNG purchase agreement with QatarEnergy from the North Field expansion project.
QatarEnergy’s CEO, Saad al-Kaabi, had previously suggested that “value-added partners” might own up to 5% of the gas trains linked to its North Field expansion.
Sinopec of China became the project’s first “value-added” partner in April.
QatarEnergy has secured equity partnerships with major oil corporations, but it aims to retain a 75% interest in the $30 billion North Field expansion, which includes liquefaction export facilities.
Chinese national energy businesses are increasingly investing in Qatar as their relations with Qatar’s two major LNG export rivals, the US and Australia, deteriorate.
CNPC and QatarEnergy didn’t immediately respond to Reuters inquiries.
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