Qatar: Sale and Purchase Contract Qatargas Signs 22 Year Agreement with Petro China to Supply 3.4 Million Tonnes of LNG Annually
Under the sale and purchase agreement, Qatargas will supply LNG from the Qatargas 2 project to different receiving terminals across China. The Qatargas 2 project is a JV between Qatar Petroleum, Exxon Mobil and Total.
Qatar – Qatargas has recently announced a long-term Sale and Purchase Agreement (SPA) with Petro China International Company, a unit of Petro China Company (Petro China), to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per annum.
Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, Exxon Mobil and Total, to different receiving terminals across China, with the first cargo to be delivered to the People's Republic of China later this month.
The SPA allows flexibility in delivering LNG to various receiving terminals across China, including the Dalian, Jiangsu, Tangshan and Shenzhen LNG receiving terminals, utilising Qatargas' fleet of 70 conventional, Q-Flex and Q-Max LNG vessels.
Qatargas is the world's largest LNG producing company with an annual production capacity of 77 million tonnes. Petro China is China's largest gas supplier, supplying 66 % 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 % in 2017 alone, with LNG imports growing by more than 40 %.