Sinopec to Take 1.25 Percent Shares in Qatar's North Field East LNG Expansion Project

Rhea-AI Summary

On April 12, 2023, Sinopec signed an equity participation agreement with QatarEnergy to acquire 1.25% shares in Qatar's North Field East (NFE) LNG expansion project, the largest LNG project globally. This follows a 27-year long-term LNG purchase agreement made in November 2022 for the supply of 4 million tons of LNG annually. The $28.75 billion NFE project aims to boost Qatar's LNG export capacity from 77 million tons to 110 million tons per year. The partnership enhances Sinopec's energy supply security and reflects China's significance as a natural gas market. This milestone marks Sinopec as the first Asian stakeholder in the NFE project, showcasing strengthened Sino-Qatar cooperation.

Positive

• Sinopec acquired 1.25% shares in the NFE project, enhancing its LNG portfolio.
• The NFE project increases Qatar's annual LNG export capacity from 77 million tons to 110 million tons.
• Partnership strengthens Sinopec's energy supply security and collaboration with QatarEnergy.

Negative

• None.

DOHA, Qatar, April 13, 2023 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") has signed an equity participation agreement with QatarEnergy on April 12 to take 1.25 percent shares in Qatar's North Field East (NFE) expansion project, which is currently the largest Liquefied Natural Gas (LNG) project in the world.

The event marks another milestone after Sinopec and QatarEnergy inked a 27-year long-term LNG purchase and sales agreement in November 2022 for the annual supply of 4 million tons of LNG to Sinopec and achieves integrated cooperation on the NFE expansion project.

Sinopec Chairman Ma Yongsheng and Qatari Minister of State for Energy Affairs, President and CEO of QatarEnergy, H.E. Saad Sherida Al-Kaabi, formally signed the agreement at a signing ceremony in QatarEnergy's headquarter in Doha.

"QatarEnergy, a world-leading LNG producer, is one of Sinopec's most important partners, the cooperation between the two companies will further strengthen the optimization of China's energy consumption pattern and improve the security, stability, and reliability of clean energy supply. With the solid foundation of our partnership, we hope to explore new LNG collaboration opportunities and expand new grounds for cooperation to achieve mutual benefit and win-win progress," said Ma.

Al-Kaabi expressed that China is one of the world's most important natural gas markets and key market for Qatar's energy products. The equity participation agreement fulfilled QatarEnergy's promise to further deepen relationships with major LNG clients, especially on developing long-term strategic partnerships with world's top clients like Sinopec. Sinopec is the first Asian stakeholder of the NFE project and the event marks a model of Sino-Qatar cooperation.

With a total investment of USD 28.75 billion, the NFE project is projected to increase Qatar's annual LNG export volume from 77 million tons to 110 million tons.

Sinopec and QatarEnergy's partnerships will help to meet the demand for natural gas in the Chinese market and continue to advance green low-carbon, safe, and sustainable energy development.

For more information, please visit Sinopec.

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SOURCE SINOPEC

FAQ

What is the significance of Sinopec's agreement with QatarEnergy on April 12, 2023?

The agreement allows Sinopec to acquire 1.25% shares in the North Field East LNG project, enhancing its LNG supply capabilities and marking a significant partnership with QatarEnergy.

What are the financial implications of the NFE project for Qatar?

The NFE project involves a total investment of USD 28.75 billion and aims to increase Qatar's LNG export capacity significantly.

How does the Sinopec and QatarEnergy partnership affect China's energy market?

The partnership is expected to optimize China's energy consumption and improve the security and stability of its clean energy supply.

What was established prior to the April 2023 equity agreement between Sinopec and QatarEnergy?

In November 2022, Sinopec and QatarEnergy signed a 27-year long-term LNG purchase agreement for 4 million tons of LNG annually.

How does the NFE expansion project impact global LNG supply?

The NFE expansion is the largest LNG project globally and will significantly increase the overall LNG supply capacity from Qatar.