Sinopec buys stake in Qatari NFE project
QatarEnergy has announced the signing of a definitive partnership agreement with China’s Sinopec for the North Field East (NFE) expansion project, it said on April 12.
Pursuant to the terms of the agreement, QatarEnergy will transfer to Sinopec a 5% interest in the equivalent of one NFE train with a capacity of 8mn metric tons/year. This agreement will not affect the participating interests of any of the other shareholders, QatarEnergy said.
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“Today’s event underscores QatarEnergy’s commitment to deepening its relationships with key LNG consumers, while prioritising long-term strategic partnerships and alignment with world class partners from China, represented by Sinopec here today,” said QatarEnergy CEO Saad al-Kaabi.
QatarEnergy in November last year signed a 27-year sales and purchase agreement with Sinopec to supply 4mn mt/yr of LNG.
“That agreement was not only the first NFE LNG supply agreement to be announced, but also the longest LNG supply agreement in the history of the industry. Today, Sinopec will join Qatar’s LNG family becoming the first Asian shareholder in the NFE project,” al-Kaabi added.
UK-based Shell, France’s TotalEnergies, Italy’s Eni, and US firms ConocoPhillips and ExxonMobil are already partners in the $28.75bn NFE project, which will raise Qatar’s LNG export capacity from the current 77mn mt/yr to 110mn mt/yr.