On Wednesday, state energy firm QatarEnergy announced that Sinopec would invest in the eastern expansion of Qatar’s North Field LNG project.
QatarEnergy said the state-owned Chinese gas company would buy 5% of one North Field East LNG train with an eight million-tonne-per-year capacity.
Sinopec didn’t reply to Reuters’ request for comment.
Qatar shares Iran’s North Field, the world’s largest gas field. In addition, the South Pars field is in Iran.
QatarEnergy’s CEO, Saad al-Kaabi, has previously suggested that “value-added partners” may own up to 5% of its North Field development.
Sinopec becomes the project’s first Asian investor.
QatarEnergy inked the longest LNG contract with Sinopec last November to deliver 4 million tonnes of LNG yearly for 27 years. Sinopec stated the arrangement was an “integrated cooperation” and that it may invest in Qatar’s North Field expansion export project.
QatarEnergy secured five North Field East agreements last year. As a result, With six LNG trains, Qatar’s liquefaction capacity will increase from 77 million tonnes to 126 million tonnes by 2027.
It has negotiated three North Field South expansion partnerships with the Gulf Arab state.
QatarEnergy said Wednesday’s agreement with Sinopec will transfer its investment in North Field East to Sinopec without affecting other shareholders’ shares.
“Today’s event demonstrates QatarEnergy’s commitment to extending its ties with important LNG users, while prioritising long-term strategic alliances and alignments with world-class partners from China,” Kaabi added.
QatarEnergy aims to keep 75% of the $30 billion North Field project, which includes liquefaction export facilities.
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