Qatar Energy has signed two agreements with China National Petroleum Corporation (CNPC) for the long-term supply of liquefied natural gas and partnership in the Northeast Field Expansion Project.
Where the two parties signed an LNG sale and purchase agreement to deliver 4 million tons of LNG annually from the Northeast Field expansion to CNPC receiving stations in China over a period of 27 years, the longest of its kind in the history of the LNG industry.
The two parties also signed a share sale and purchase agreement, according to which Qatar Energy will transfer a 5% stake, equivalent to one equivalent production line, from the Northeast Field Expansion Project, with a capacity of eight million tons per year, to CNPC. Under this agreement, CNPC will become a partner in the project and this will not affect the shares of other partners in the project.
The two agreements were signed by HE Eng. Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, and Mr. Dai Houliang, Chairman of the Board of Directors of the China National Petroleum Corporation, in the presence of a number of senior officials from the two companies.
In a speech during the signing ceremony, His Excellency Eng. Saad bin Sherida Al-Kaabi welcomed the joining of CNPC to the LNG family in Qatar as a valuable partner in the Northeast LNG field expansion project, and said: “We are happy with this partnership with CNPC and building on the distinguished bilateral relations between People’s Republic of China and the State of Qatar.
He added, “By signing these two agreements, we confirm our commitment to our customers and partners and our common ambition to achieve a sustainable future by providing a cleaner, more environmentally friendly source of energy at an economic cost that will contribute to ensuring greater social and economic development.”
His Excellency Minister Al-Kaabi concluded his speech by thanking the work teams in Qatar Energy and CNPC for their distinguished efforts that resulted in the signing of these two agreements, and added: “We owe a lot of thanks to His Highness Sheikh Tamim bin Hamad Al Thani, Emir of Qatar, may God protect and protect him, for his directives. and his continuous support for the energy sector.”
For his part, Mr. Dai Houliang, Chairman of the Board of Directors of CNPC, said: “Our cooperation in the Northeast Field project represents a major achievement for both CNPC and Qatar Energy in achieving this strategic consensus between the leaders of the two countries. It also constitutes an important sign on the path of strategic synergy between the Chinese ‘Belt and Road’ initiative and Qatar National Vision 2030, and a solid foundation for energy cooperation between the two sides in the next three decades. With this new starting point, CNPC will continue to explore comprehensive cooperation with Qatar Energy across the components of the hydrocarbon industry chain, and other areas such as green and low-carbon energies, with the aim of building a stable, long-term and multi-dimensional strategic partnership.”
