Qatar Energy announced the signing of a partnership agreement with China Petrochemical Corporation (Sinopec) in the Northeast Field Expansion Project, which is the largest single project in the history of the LNG industry.
The agreement was signed by HE Eng. Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, and Dr. Ma Yong-sheng, Chairman of the Board of Directors of Sinopec, at a ceremony held yesterday at the headquarters of Qatar Energy, in the presence of a number of senior officials from the two companies.
Under this agreement, Qatar Energy will transfer to Sinopec a share of 5% of the equivalent of one production line of the project with a capacity of 8 million tons per year, while maintaining the shares of other partners unchanged.
This agreement represents a milestone with Sinopec entering as a partner in one of the joint venture companies that own the North East Field Development Project, which is considered one of the most important projects in the global LNG industry.
His Excellency Engineer Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, said: “The People’s Republic of China is one of the most important gas markets in the world, and a major market for Qatari energy products.” He added, “Today’s event highlights the commitment of Qatar Energy is committed to strengthening its relations with major LNG consumers, giving preference to long-term strategic partnerships and achieving alignment of interests with partners with global capabilities from China, represented by Sinopec here today.”
Referring to the agreement signed by the two sides in November 2022 to supply four million tons per year of LNG from the Northeast Field Expansion Project, His Excellency Minister Al-Kaabi said: “This was not the first sale and purchase agreement for LNG from the Northeast Field Expansion Project to be concluded.” Not only was it signed and announced, but it is also the longest agreement of its kind in the history of the LNG industry. Today, Sinopec joins the LNG family in Qatar as the first Asian partner in the North East Field Expansion Project.”
He concluded: “We are pleased to sign this agreement with Sinopec, which constitutes a new milestone in the distinguished bilateral relations between the People’s Republic of China and the State of Qatar. On this occasion, I would like to thank all members of the work teams in Sinopec and Qatar Energy for their great efforts that resulted in the signing of this important agreement. We owe many thanks to His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the country, “may God protect and preserve him,” for his wise guidance and continuous support for the energy sector.
For his part, Dr. Ma Yong-Xing, Chairman of the Board of Directors of Sinopec, congratulated the two parties on signing the Northeast Field Project Partnership Agreement, and said: “The meeting between Chinese President Xi Jinping and His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar during the first Chinese-Arab summit and the Sino-Gulf in 2022, comprehensively outline the development blueprint for the strategic partnership between the two countries and the direction of energy cooperation between China and Qatar. The signing of this agreement is a tangible step to move forward with what was agreed upon between the heads of state of the two countries and to strengthen the partnership between Sinopec and Qatar Energy. It is another milestone after the signing of the long-term LNG sale and purchase agreement from the Northeast Field Expansion Project in November 2022, and it is also an indication of the integrated cooperation achieved by the two companies in the Northeast Field Expansion Project.”
Dr. Ma added, “The energy cooperation between China and Qatar is characterized by natural complementarity. Qatar Energy is one of the world’s leading LNG producers and one of Sinopec’s most important partners. Cooperation with Qatar Energy will help Sinopec improve China’s energy consumption structure and enhance the security, stability and reliability of clean energy supply. I hope that the two companies will continue to explore new cooperation opportunities in the field of LNG based on the solid foundation we have laid together, and further expand areas of cooperation to achieve mutual benefit and win-win results.”
