Qatar has agreed to supply Sinopec with natural gas for 27 years, the Gulf emirate's state-owned energy company said Saturday, its second such deal with the Chinese firm.
Doha will supply three million tonnes of gas a year under the deal, QatarEnergy said, announcing another agreement granting the Chinese oil giant for a further share of Qatar's North Field gas expansion project.
The expansion, which broke ground last month, contains the world's biggest natural gas reserves and extends under the Gulf into Iranian territory.
Under the deal inked in Shanghai, QatarEnergy will give Sinopec a five percent interest in a joint venture with a six million tonnes per year capacity in the second phase the expansion, North Field South.
Asian countries led by China, Japan and South Korea are the main market for Qatar's gas, which has been increasingly sought by European countries since Russia's invasion of Ukraine early last year.
In April, state-owned Sinopec became the first Asian firm to secure a stake in the Qatari expansion's first phase, North Field East.
In 2022 the Chinese firm signed a 27-year supply deal with Qatar for four million tonnes of liquified natural gas (LNG) annually, which at the time was the longest in the industry.
"These historic milestones are a testament to the excellent bilateral relations between the People's Republic of China and the state of Qatar as well as between Sinopec and QatarEnergy," the Gulf firm said in a statement.
The first Sinopec deal was succeeded by a flurry of similar 27-year agreements with France's Total, Britain's Shell and Italy's Eni, all announced in recent weeks.
In June this year, Qatar also announced a 27-year supply deal with the China National Petroleum Corporation.
US giants ConocoPhillips and ExxonMobil have also signed deals to partner in the expansion.
Qatar is one of the world's top LNG producers, alongside the United States, Australia and Russia.
QatarEnergy estimates the North Field holds about 10 percent of the world's known natural gas reserves.
Artificial Intelligence Analysis
This text discusses a 27-year natural gas supply deal between Qatar and Sinopec, a Chinese oil giant.
State-of-the-Art and Limitations:
The deal is the second such agreement between Qatar and Sinopec, granting the Chinese oil giant a share in Qatars North Field gas expansion project. Asian countries are the main market for Qatars gas, while European countries have been increasingly seeking it since Russias invasion of Ukraine.
The deal is the longest in the industry and has been succeeded by a flurry of similar agreements with Frances Total, Britains Shell, and Italys Eni. The US giants, ConocoPhillips and ExxonMobil, have also signed deals to partner in the expansion.
Target Audience and Impact:
The target audience of this text is those interested in the natural gas supply deals between Qatar and Sinopec. If successful, it could secure a larger market for natural gas in Asia and Europe.
Risks and Costs:
The risks involved with pursuing this approach are unpredictable changes in the market, as well as any difficulties with the expansion project. The cost of pursuing this approach is hard to estimate without knowing more information about the agreements and the project.Timeline and
The timeline for achieving results is not stated in the text. Mid-term and final success metrics would depend on the specific goals of the agreements.
The text presents a clear overview of a natural gas supply deal between Qatar and Sinopec and its potential impact on the market. It also outlines some potential risks and costs involved.