Qatargas signed a long-term sales and purchase agreement (SPA) with PetroChina International Company Limited, a unit of PetroChina, to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per annum, the company announced on Monday.
Under the 22-year SPA ending in 2040, Qatargas will supply LNG from the Qatargas 2 project - a joint venture between Qatar Petroleum, ExxonMobil and Total - to various receiving terminals across China.
The first cargo is planned for delivery to China later this month, the company noted.
"This agreement underscores Qatar's trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world's largest LNG producer, supplying safely and reliably across the globe," Saad Sherida Al-Kaabi, president and CEO of Qatar Petroleum, and chairman of Qatargas, was quoted as saying.
"With China expected to become one of the world's largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term," Khalid Bin Khalifa Al-Thani, Qatargas CEO, also said.
Qatargas is the world's largest LNG producing company with an annual production capacity of 77 million tonnes, the company noted, adding that PetroChina is China's largest gas supplier, supplying 66 percent of China's domestic demand in 2017.
"It is anticipated that the People's Republic of China will become one of the world's largest gas markets. Chinese gas consumption grew by 15 percent in 2017 alone, with LNG imports growing by more than 40 percent," it concluded.
By Ebru Sengul