QatarEnergy selects CNPC as NFE partner; signs LNG deal to supply China 4mn tpy for 27 years

QatarEnergy signed definitive agreements with China National Petroleum Corporation, covering the supply of 4mn tonnes of LNG annually for 27 years and a 5% stake for CNPC in the North Field East LNG expansion project (NFE).At a ceremony held at QatarEnergy headquarters Tuesday, the two parties signed an LNG sales and purchase agreement (SPA) for the delivery of 4mn tons of LNG per year from the NFE project to CNPC’s receiving terminals in China over a span of 27 years, marking the industry’s longest term SPA commitment.The two parties also signed a share sale and purchase agreement pursuant to which QatarEnergy will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8mn tons per year. This transfer will see CNPC become a partner in the NFE project and will not affect the participating interests of any of the other shareholders in the project.The agreements were signed by HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Dai Houliang, chairman of CNPC, in the presence of senior executives from both the companies.In his remarks at the signing ceremony, al-Kaabi welcomed CNPC as a valuable partner in the NFE project.The minister said, "We are pleased to embark on this partnership with CNPC and to build on the excellent relations between the People’s Republic of China and the State of Qatar. These agreements demonstrate our unwavering commitment to our customers and partners and to our shared ambition for a sustainable future facilitated by a cleaner, and more eco-friendly energy source that would catalyze substantial socio-economic development.”Al-Kaabi expressed his thanks and appreciation to the teams from CNPC and QatarEnergy for their dedication and for working tirelessly to finalize the agreements.The minister concluded his remarks by stating: "We are forever grateful for the wise guidance of His Highness the Amir Sheikh Tamim bin Hamad al-Thani and for his continued support of the energy sector.”Later al-Kaabi told Gulf Times that China is now Qatar's top buyer of liquefied natural gas."China is the largest consumer of LNG from Qatar by far...China is our number one customer. China is also the world's biggest buyer."Last year, al-Kaabi said, Qatar sold 15mn tonnes of LNG to China. China is also a huge market for LPG, helium and condensates, of which Qatar is the world's top producer.On his part, Houliang said, "Our collaboration over the NFE project represents a major achievement and excellent practice of both CNPC and QatarEnergy in delivering on the strategic consensus of the leaders of our countries. It is another milestone in forming a strategic synergy between China’s ‘Belt and Road’ Initiative and Qatar’s National Vision 2030."It lays a solid foundation for the energy cooperation between the two sides in the next three decades. From this brand-new starting point, CNPC will continue to actively discuss with QatarEnergy all-round cooperation across the hydrocarbon industry chain and other areas like green and low carbon energies, so as to build a stable, long-term, and multi-dimensional strategic partnership.”