Sinopec Entered Into Mammoth LNG Deal with Qatar

SEATTLE (Oil Monster): Beijing-headquartered China Petroleum & Chemical Corporation (Sinopec) announced that it has entered into a milestone liquefied natural gas agreement with Qatar. The 27-year agreement will ensure purchases of 4 million tonnes of LNG from QatarEnergy.

According to Saad Sherida al-Kaabi, Chief Executive, QatarEnergy, the agreement is one of the longest gas supply agreement in the history of the LNG industry. Apart from further solidifying the bilateral relationship between the two countries, it will help China meet its rising energy needs. Earlier, QatarEnergy had signed a 10-year LNG purchase agreement with Guangdong Energy Group Natural Gas Company.

Ma Yongsheng, Chairman, Sinopec said that the company considers the recent co-operation with QatarEnergy as extremely important. It considers QatarEnergy as a strategic, long term and all-round partner and hopes to increasingly cooperate with them in future as well, he added.

Analysts noted that the long-term agreement, which comes at a time when buyers are seen seeking shorter contracts, demonstrates the Chinese commitment to include LNG in its energy mix in the long run.

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