Qatar To Secure Second Gas Supply Agreement With China

The Financial Times reported on Tuesday that Qatar is ready to sign a second significant gas supply agreement with a Chinese state-controlled corporation in less than a year.

According to persons briefed on the situation, China National Petroleum Corporation (CNPC) and QatarEnergy are set to sign a 27-year agreement on Tuesday under which China will purchase 4 million metric tonnes of LNG each year from the Gulf state.

According to the article, CNPC would also invest in the eastern extension of Qatar's North Field liquefied natural gas (LNG) project.

CNPC is close to sealing an agreement to acquire LNG from QatarEnergy over roughly 30 years from the North Field expansion project, according to sources.

QatarEnergy has stated that it intends to keep a 75% interest in the North Field expansion, which is expected to cost at least $30 billion, including the development of liquefaction export facilities.

As relations between Beijing and Qatar's two main LNG export rivals, the United States and Australia, deteriorate, Chinese national energy businesses increasingly regard Qatar as a safer destination for resource investment.

A request for comment from China National Petroleum Corporation and QatarEnergy was not immediately responded to.