QatarEnergy, Sinopec Partner for North Field South Project, Sign LNG Supply Agreement
QatarEnergy will provide Sinopec with 3 MTPA of LNG from the North Field South project over a span of 27 years.
QatarEnergy has announced that it entered a partnership agreement with the China Petrochemical Corporation (Sinopec) for cooperation on the North Field South (NFS) expansion project. In addition to the NFE partnership, the companies also signed a long-term sales and purchase agreement (SPA) for the offtake of 3 MTPA of LNG from the NFS site to Sinopec’s import terminals in China. Sinopec will receive 3 MTPA of LNG over the span of 27 years, as per the agreement.
The partnership agreement and SPA were signed at a ceremony in Shanghai, which was attended by senior executives from QatarEnergy and Sinopec. The agreements were signed by Saad Sherida Al-Kaabi, the president and CEO of QatarEnergy, and Dr. Ma Yongsheng, the Chairman of Sinopec.
Signing ceremony between QatarEnergy and Sinopec, Shanghai, China; Image Credits: QatarEnergy
According to the terms of the agreement, QatarEnergy will transfer a 5% interest to Sinopec from a joint venture company that owns an equivalent of 6 MTPA of LNG capacity at the NFS expansion project. This agreement builds on a previous partnership between the companies, in which Sinopec entered as a shareholder in one of the North Field East (NFE) joint venture companies for the expansion project. The participation between QatarEnergy and Sinopec will not affect the participating interests of other NFE or NFS project shareholders.
