QatarEnergy signs LNG supply deal with Taiwan’s CPC

QATARENERGY signed a deal on Wednesday (Jun 5) to supply Taiwan’s state-owned oil firm Chinese Petroleum Corp (CPC) with liquefied natural gas (LNG) for 27 years and giving it a stake in the Gulf state’s gas expansion project.

The state-owned Qatari firm said that it will supply CPC with four million tonnes per annum (mtpa) of LNG from the North Field East, the eastern expansion of the project.

CPC will also take an equity stake in that part of the project, QatarEnergy’s statement said.

The stake is the equivalent of 5 per cent of one LNG train with capacity of eight million tonnes a year.

“This transfer will see CPC become a partner in the NFE project without affecting the participating interests of any of the other shareholders,” QatarEnergy said in statement.

QatarEnergy signed identical deals with China’s state-owned Sinopec and China National Petroleum Corp in 2022 and 2023.

QatarEnergy has been signing a string of supply deals with Asian and European partners for gas that is expected to come onstream in 2026 from its massive North Field expansion, part of the world’s largest natural gas field that Qatar shares with Iran, which calls it South Pars.

QatarEnergy has this year also signed LNG agreements with Petronet and Excelerate Energy to supply India and Bangladesh, respectively.

Qatar, one of the world’s largest LNG exporters, announced an additional expansion of its LNG production in February that will add 16 million tonnes per year to its original plans, bringing total capacity to 142 million tonnes per year from 77 million tons.

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The gas giant also signed 27-year supply deals last year with oil majors TotalEnergies, Shell and Eni. The three European oil firms, as well as CNPC and Sinopec, also have stakes in Qatar’s North Field gas expansion. US firms ExxonMobil and ConocoPhilips also have stakes in the expansion. REUTERS