Chinese state-owned energy giant Sinopec sign a new 27-yr LNG deal with Qatar - ForexLive
Chinese state-owned energy giant Sinopec sign a new 27-yr LNG deal with Qatar | Forexlive
China Petrochemical Corporation, better known as Sinopec Group, is the world's largest oil refining, gas and petrochemical conglomerate. Its a Chinese state-owned firm and as such is administered by the Chinese Communist Party's State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
On Saturday Sinopec and QatarEnergy (the world’s top LNG supplier) signed a new 27-year liquefied natural gas (LNG) supply and purchase agreement.
News wires had the report, highlighting that:
- the two companies will cooperate on the second phase of the North Field (part of the world’s largest gas field which Qatar shares with Iran) expansion project, which will supply 3 million metric tons of LNG per year to Sinopec
- QatarEnergy will transfer a 5% interest to Sinopec in a joint venture company
- this is the third long-term supply deal between Sinopec and Qatar Energy
China is deepening its ties into Middle East energy.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.