Qatar Energy and Sinopec sign historic North Field South collaboration deal and 27-year supply arrangement.

QatarEnergy has announced the signing of a collaboration agreement for the North Field South (NFS) expansion project with China Petrochemical Corporation (Sinopec).
The two parties also agreed to a 27-year long-term sales and purchase agreement (SPA) for the delivery of 3 million tonnes per annum (MTPA) of LNG from the NFS project to Sinopec’s receiving ports in China.

His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, and Dr. MA Yong-sheng, Chairman of Sinopec, signed the agreements today in Shanghai in a special ceremony attended by senior officials from both businesses.

According to the terms of the cooperation agreement, QatarEnergy will give Sinopec a 5% stake in a joint venture firm that will control the equivalent of 6 million tonnes per annum (MTPA) of LNG production capacity in the NFS project.

Today’s partnership agreement is the second of its kind with Sinopec, following a similar one signed in Doha last April, which marked Sinopec’s entry as a shareholder in one of the joint venture companies that own the North Field East (NFE) project, one of the most critical projects in the global LNG industry. The agreement has no bearing on the other shareholders’ participation interests.

The long-term LNG SPA agreed today follows another SPA inked in November 2022 for the supply of 4 MTPA of LNG over 27 years, the industry’s longest LNG supply agreement.
These historic achievements attest to the People’s Republic of China’s good bilateral relations with the State of Qatar, as well as Sinopec and QatarEnergy.

SOURCE:https://www.qatarenergy.qa/en/MediaCenter/Pages/newsdetails.aspx?ItemId=3779