State-owned PetroChina stepped up its efforts to secure liquefied natural gas supplies as China continues its quest to switch from coal use to natural gas.
Citing sources close to the matter, Reuters reports PetroChina is in an advanced stage of talks with Qatar to secure LNG supply on short- and long-term deals.
With the agreements, China, that has already surpassed South Korea as the world’s second largest LNG importer, could leverage Qatar’s planned capacity expansion.
Under one of the discussed deals, PetroChina would be receiving several million tons of LNG per year through to 2022 with the start of deliveries expected this year.
One of the deals would have a longer-term although no details have been disclosed.
China’s imports of liquefied natural gas (LNG) surged 46 percent to 38.13 million tons in 2017, passing South Korea and is expected to continue its growth and hit 87 million tons of annual LNG imports by 2020.
Qatar’s expansion plans, on the other hand, will see the world’s largest LNG producer bump its export capacity to 100 million tons from the current 77 mtpa.
LNG World News Staff