Sinopec, a state-owned Chinese company, and QatarEnergy said they had inked a new 27-year LNG supply and purchase agreement. As per the deal, the two businesses will collaborate on the second phase of the North Field development project of the Gulf Arab state, which will supply Sinopec with 3 million metric tonnes of LNG annually.
Additionally, a cooperation agreement was inked whereby Sinopec will get a 5% stake from QatarEnergy in a joint venture business that will control the ability to produce 6 million tonnes of LNG annually as part of the North Field South project. The agreement is the third long-term supply contract Sinopec and Qatar Energy, the leading LNG provider in the world, have inked at the China International Import Expo in Shanghai.
In 2021, the two businesses inked a 10-year contract for the acquisition and sale of LNG, which was later extended to 27 years last year. The North Field is a portion of the largest gas field in the world, which is shared by Iran and Qatar and is known as South Pars. Six LNG trains are part of the North Field development plan, which will increase Qatar's liquefaction capacity from 77 million metric tonnes annually to 126 million by 2027.