QatarEnergy, the country's hydrocarbon bellwether, on Wednesday signed definitive agreements with CPC Corporation, Taiwan (CPC) covering the long-term supply of liquefied natural gas (LNG) to CPC and partnership in the North Field East LNG expansion project (NFE).
The two parties signed an LNG sales and purchase agreement (SPA) for the delivery of 4mn tonnes per annum (MTPA) of LNG from the NFE project to CPC over a period of 27 years.
The two sides also signed a share sale and purchase agreement pursuant to which QatarEnergy will transfer to CPC a 5% interest in the equivalent of one NFE train with a capacity of 8Mtpa.
This transfer will see CPC become a partner in the NFE project without affecting the participating interests of any of the other shareholders in the project.
The agreements were signed by HE Saad Sherida al-Kaabi, the Minister of State for Energy Affairs, the President and Chief Executive Officer of QatarEnergy, and Shun-Chin Lee, the chairman of CPC Corporation, Taiwan during a special ceremony held at QatarEnergy’s headquarters in Doha and attended by senior executives from both companies.
"We look forward to further enhancing our relationship with CPC, which extends for over three decades, and to further demonstrate our unwavering commitment to our customers and partners around the world," said al-Kaabi.
The NFE project is part of the overall North Field LNG expansion programme that also includes the North Field South and North Field West projects, which together will raise Qatar’s LNG production capacity from the current 77Mtpa to 142Mtpa in 2030.
"QatarEnergy, the world’s leading LNG player, has been playing an important role in ensuring Taiwan’s domestic gas market over the past decades. CPC’s acquired equity in the NFE project and this new LNG SPA will further strengthen the cooperative relationship between our two companies,” Lee said.
