Today, Qatar Energy signed a partnership agreement with China Petrochemical Corporation (Sinopec) in the Northeast Field Expansion Project, which is the largest single project in the history of the LNG industry.
Under this agreement, Qatar Energy will transfer to Sinopec a 5 percent stake in the equivalent of one production line of the project with a capacity of 8 million tons per year, while maintaining the shares of other partners unchanged.
This agreement represents a milestone in the entry of “Sinopec” 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 agreement was signed by Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, and Ma Yongxing, Chairman of the Board of Directors of “Sinopec”, in a ceremony held today at the headquarters of Qatar Energy in the presence of a number of senior officials from the two companies.
Al-Kaabi said that the People’s Republic of China is one of the most important gas markets in the world, and a major market for Qatari energy products. Alignment of interests with partners with global capabilities from China represented by Sinopec here today.
Referring to the agreement signed by the two sides in November 2022 to supply four million tons annually of liquefied natural gas from the Northeast Field Expansion Project,
Al-Kaabi said: “This was not only the first LNG sale and purchase agreement from the Northeast Field Expansion Project to be signed and announced, but it is also the longest agreement of its kind in the history of the LNG industry. Today, Sinopec joins the LNG family in Qatar.” As the first Asian partner in the North East Field Expansion Project.
He added, “The signing of the agreement with Sinopec constitutes a new milestone in the distinguished bilateral relations between the People’s Republic of China and the State of Qatar, and on this occasion, I would like to thank all members of the work teams in Sinopec and Qatar Energy for their great efforts that resulted in the signing of this important agreement.”
It is noteworthy that this is the first announcement of its kind after a set of announcements to select partners for the Northeast Field Expansion Project, worth $28.75 billion, which will raise Qatar’s LNG production capacity from 77 million tons per year to 110 million tons per year.
This article was originally published by RT.