Sinopec signs another big deal with Qatar Energy

On November 4, Sinopec and Qatar Energy Company signed an integrated cooperation agreement for the second phase of the Northern Gas Field Expansion Project (NFS), including a 27-year long-term purchase and sale agreement for liquefied natural gas (LNG) and an upstream equity participation agreement. According to the agreement, Qatar Energy will supply 3 million tons of LNG to Sinopec every year and transfer 5% of its equity in the joint venture to Sinopec (equivalent to 1.875% of the NFS project). This is the third long-term LNG purchase and sale agreement signed by the two parties, and also the second integrated cooperation project reached by the two parties after the first phase of the northern gas field expansion project.

Sinopec and Qatar Energy Company have a good foundation for cooperation. In 2021, the two parties signed a 2 million tons/year, 10-year long-term LNG purchase and sales agreement; in 2022, the two parties signed a 4 million tons/year, 27-year long-term LNG purchase and sales agreement.