Doha-based LNG firm Qatargas has signed a long-term sale and purchase agreement with PetroChina International to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per year.
Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China, with the first cargo to be delivered to China later this month.
“This agreement underscores Qatar’s trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world’s largest LNG producer, supplying safely and reliably across the globe,” Saad Sherida Al-Kaabi , President and CEO of Qatar Petroleum, and Chairman of the Qatargas Board of Directors, said.
“With China expected to become one of the world’s largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term,” Khalid Bin Khalifa Al-Thani , Qatargas Chief Executive Officer, said.
The SPA allows flexibility in delivering LNG to various receiving terminals across China, including the Dalian, Jiangsu, Tangshan and Shenzhen LNG receiving terminals, utilising Qatargas’ fleet of 70 conventional, Q-Flex and Q-Max LNG vessels.