The state-owned natural gas supplying giant has sent its first LNG cargo as part of a new deal to a Chinese corporation.
Qatar Energy [QE] has sent out its first cargo of liquefied natural gas (LNG) to China’s Sinopec Group, as part of a 10-year agreement signed last year between both parties.
The Gulf state’s first tanker, Al Sahla, heading to China, carried 94,000 tonnes of Qatari gas and was discharged into Sinopec’s Tianjin terminal earlier this week, Tianjin Daily reported.
This comes as part of a deal signed in March to supply China annually with 2 MTPA of LNG to Sinopec’s terminals, starting from January 2022. This is QE’s first long-term deal with the major Chinese LNG importer.
The Chinese-owned Sinopec Group, is one of the world’s largest oil companies and of the most dominating nationally in the domestic energy business. The deal marked a huge milestone for Qatar-China LNG operations.
Over the past years, the Gulf state has been signing major LNG supply deals with several Asian countries.
In September, Qatar Energy signed a new deal to supply LNG to CNOOC, China’s top offshore oil and gas producer, for 15 years. According to the contract, Qatar will deliver 3.5 million tonnes of LNG per annum (MTPA) starting this month.
Both companies have a longstanding history together, starting with the first LNG cargo shipment by QE to CNOOC in 2009.
In October, QE ordered four new LNG tankers from Hudong-Zhonghua Shipbuilding Group Co. Ltd. (Hudong), a subsidiary of China State Shipbuilding Corporation Limited (CSSC).
Qatar has stated that China is considered a significant customer and strategic partner in the energy field.