LNG

Chinese liquefied natural gas imports rose year-on-year by 4.2 percent last month and over 18 percent in the year-to-date period, keeping the nation on track to be the world’s No. 1 LNG importer for 2021.

QatarEnergy is continuing to build the company's Chinese sales portfolio with yet another Sale and Purchase Agreement, this time with China’s S&T International Natural Gas Trading Co. for the supply of 1 million tonnes per annum over a 15-year period starting in late 2022.

“This agreement marks further expansion of our customer base in the People’s Republic of China, which can count on Qatar as a trusted and reliable energy partner,” said Saad Sherida Al-Kaabi, the President and Chief Executive of QatarEnergy.

“We are pleased to welcome S&T into our family of long-term LNG customers and we are excited to work with them to help fulfil their long-term LNG requirements,” added Al-Kaabi.

QatarEnergy said the LNG deliveries under the SPA would allow S&T to receive its volumes from Qatar’s fleet of vessels, primarily at the Tangshan import terminal located in Caofeidian Port in northeast Hebei Province.

The Chinese volumes would be produced at the Qatar Liquified Gas Company (II) project at Ras Laffan.

QatarEnergy had disclosed on December 7 that it had signed an SPA with Guangdong Energy Group based in southern China for the supply of 1 MTPA of LNG over a 10-year period starting in 2024.

Increasing volumes

With the conclusion of the S&T deal and the Guangdong Energy agreement, China will be supplied with around 17.5 MPTA of LNG from Qatar under long-term SPAs.

Deliveries under the Guangdong Energy SPA would be made to the Dapeng and Zhuhai receiving terminals on the Pearl River Delta.

Al-Saadi said that China was considered a major customer for the State of Qatar and a strategic partner in the energy sector.

Other supply deals with China have been previously arranged, though a landmark accord was reached in September 2021 when QatarEnergy signed an SPA with China National Offshore Oil Corp. for the supply 3.5 MTPA over a 15-year period starting in January 2022.

That SPA was signed during a virtual ceremony involving Al-Kaabi and Wang Dongjin, the Chairman of CNOOC.

QatarEnergy signed a previous deal in July 2021 in the form of 10-year SPA with Shell for the supply of 1 MTPA of LNG to China.

QatarEnergy entered into a long-term sale and purchase agreement (SPA) with Guangdong Energy Group based in southern China for the supply of 1 million tonnes per annum of LNG over a 10-year period starting in 2024.