Qatar has signed an agreement to supply China’s Sinopec with natural gas for 27 years, the longest deal of its kind, QatarEnergy chief Saad al-Kaabi Kaabi told Reuters Monday.
The $60 billion deal will provide 4 million tons of liquefied natural gas (LNG) per year to China as overall global demand for LNG from non-Russian sources has soared, with Qatar, the world’s largest LNG exporter, set to reap the rewards, Reuters reported. China has imported record amounts of LNG from Russia over previous months after Russian prices tanked as a result of the West’s punishing sanctions regime, amid fierce competition for energy resources.
“Today is an important milestone for the first sales and purchase agreement for North Field East project, it is 4 million tonnes for 27 years to Sinopec of China,” Kaabi told Reuters. “It signifies long-term deals are here and important for both seller and buyer.”
Qatar’s North Field comprises part of the world’s largest natural gas field, which it shares with Iran, according to Reuters. QatarEnergy signed two deals earlier in 2022 expanding its reach into the North Field.
“We are very happy about this deal with Sinopec because we have had a long-term relationship in the past, and this takes our relationship to new heights as we have an SPA that will last into the 2050s,” Kaabi told Reuters.