Chinese major Sinopec receives first cargo from Qatar to maintain Beijing gas supply under 10-year sales deal

Tuesday, 18 January 2022
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China Petroleum and Chemical Corp. (Sinopec) has received its first cargo of liquefied natural gas from Qatar under a 10-year supply deal signed with QatarEnergy.

The LNG carrier “Al Sahla” has discharged the shipment at the Tianjin North import terminal, the one that supplies the Chinese capital Beijing with natural gas.

The Qatari Q-Flex vessel with 211,840 cubic metres of capacity was now headed for Singapore, according to shipping data.

This is part of a deal signed with QatarEnergy signed in March 2021 for an annual supply of 2 million tonnes per annum over the next decade.

The SPA was signed by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, as well as President and Chief Executive of Qatar Petroleum, and Zhang Yuzhuo, the Chairman of the Sinopec Group, during a virtual ceremony because of the Covid-19 pandemic.

The Qataris said that the SPA with Sinopec demonstrated the Arab Gulf nation’s continued commitment to meeting the growing energy demand of its customers globally.

Al-Kaabi said at the time that the Sinopec supply deal would further solidify the excellent bilateral relations between China and the State of Qatar.

He stated that Qatar was “proud of the fact” that this deal would be Sinopec's first long-term LNG SPA with Qatar.

However, Qatar’s LNG relationship with China dates back to 2009 when it received its first cargo.

That Qatari shipment from the liquefaction plant at Ras Laffan was delivered to China National Offshore Oil Corp. in September 2009.

Qatar has delivered more than 750 LNG cargoes to China, of which 290 cargoes have been delivered to CNOOC.

After the CNOOC supply deal the Qataris, along with Ras Laffan project partner Shell, agreed in 2011 to sell 3 MTPA to PetroChina for 25 years.

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