LNG News Editor:
QatarEnergy signed definitive agreements with CPC Corp. of Taiwan covering the long-term supply of cargoes and a partnership in the North Field East LNG expansion project in the Arabian Gulf.
The two parties signed an LNG Sales and Purchase Agreement (SPA) for the delivery of 4 million tonnes per annum of LNG from the NFE project to CPC over a period of 27 years.
The two sides also signed a share sale and purchase agreement pursuant to which QatarEnergy would transfer to CPC a 5 percent interest in the equivalent of one NFE Train with a capacity of 8 MTPA.
Multiple expansions
“This transfer will see CPC become a partner in the NFE project without affecting the participating interests of any of the other shareholders in the project,” a statement said.
The agreements were signed by Saad Sherida Al-Kaabi, the President and Chief Executive of QatarEnergy, and Shun-Chin Lee, the Chairman of CPC, during a ceremony at QatarEnergy’s headquarters in Doha also involving senior executives from both companies.
“We look forward to further enhancing our relationship with CPC, which extends for over three decades, and to further demonstrate our unwavering commitment to our customers and partners around the world,” said Al-Kaabi.
The NFE project is part of the overall North Field LNG expansion that also includes the North Field South and the North Field West projects, which together will raise Qatar’s LNG production capacity from the current 77 MTPA to 142 MTPA in 2030.
“QatarEnergy, the world’s leading LNG player, has been playing an important role in ensuring Taiwan’s domestic gas market over the past decades,” said CPC’s Shun-Chin Lee.
“CPC’s acquired equity in the NFE project and this new LNG SPA will further strengthen the cooperative relationship between our two companies,” he added.
Three phases
The current NFE ramp-up of QatarEnergy’s liquefaction capacity will take production from 77 MTPA to 110 MTPA by 2027.
