On Wednesday, QatarEnergy and China Petrochemical Corporation (Sinopec) signed a partnership agreement for the Northeast Field Expansion Project, the largest single project in the history of the LNG (liquified natural gas) industry.
As per the agreement, Qatar News Agency (QNA) reported that QatarEnergy will transfer a 5% stake in one production line of the project with a capacity of 8 million tons annually to Sinopec, while maintaining the shares of other partners.
Read more: Qatar is dealing with its LNG challenges sustainably, intelligently
This agreement marks a significant milestone for Sinopec’s entry as a partner in one of the joint venture companies that own the North East Field Development Project, which is considered one of the most important projects in the global LNG industry.
The signing ceremony was held at the headquarters of QatarEnergy and was attended by a number of senior officials from both companies. The agreement was signed by Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Chairman of the Board of Directors of Sinopec Ma Yongxing.
According to Al-Kaabi, China is one of the most significant gas markets globally as well as a major market for Qatari energy products.
In November 2022, QatarEnergy entered into a sale and purchase agreement with China Sinopec to supply 4 million tons per year of LNG to China for a 27-year period beginning in 2026.
Moreover, China, being the largest importer of LNG worldwide, met 45% of its natural gas requirements through imports last year, and views Qatar as a trustworthy long-term supplier after a series of purchase agreements with the United States in late 2021.
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