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China signs 27-year LNG supply deal with Qatar at $60bn

BI Desk || BusinessInsider

Published: 19:57, 21 November 2022  
China signs 27-year LNG supply deal with Qatar at $60bn

Representatives of Qatar Energy and Sinopec sign an agreement on LNG. Photo: Collected

China has entered into one of the largest ever liquefied natural gas (LNG) deals with Qatar worth a record $60 billion, Qatar News Agency announced on Monday.

The landmark deal is set to help quench Bejing’s energy thirst at a time when many nations are rushing to lock in energy deals amid a crunch caused by the Russian-Ukraine war.

Qatar Energy, the state-owned petroleum company, will send China Petroleum and Chemical Corporation (Sinopec) four million tonnes of LNG a year starting in 2026 in a deal expected to last 27 years.

The agreement is also significant because it would be China’s longest LNG supply contract and one of the country’s largest in terms of volume.

Qatar’s energy minister and head of Qatar Energy, Saad al-Kaabi, signed the agreement with Ma Yongsheng, Sinopec’s chairman.