Qatar is seeking to become the world’s largest LNG producer by 2030.
South Korea announced on Monday that it signed a 20-year deal with Qatar to purchase an additional 2 million tonnes of liquified natural gas [LNG] per year starting from 2025, Reuters reported.
“This long-term contract is considered to have favourable contract conditions, which would help stabilise LNG supply as well as to significantly drop fees,” South Korea’s energy ministry said in a statement.
Under the new agreement, South Korea will be able to import 6.1 million tonnes of LNG from Qatar annually.
The energy ministry previously bought 9 million tonnes of LNG from the Gulf state through long-term contracts, and the latest deal comes as a previous contract worth 4.9 million tonnes is expected to end in 2024.
In 2020, Qatar represented 22% of South Korea’s LNG imports, followed by Australia which accounted for 20% and the US with 14%.
Last week, Qatar Petroleum [QP] signed a a 15-year LNG Sale and Purchase Agreement [SPA] with CPC Corporation, Taiwan [CPC]. Under the agreement, QP will be supplying 1.25 million tonnes per annum [MTPA] of LNG to the Taiwanese company staring from January 2022.
QP has also recently penned a deal to supply an additional 1 million tonnes per year of LNG to China after signing a 10-year contract with British-Dutch multinational oil and gas giant Shell.
The deal means that Qatar will supply 12 million tonnes per year of LNG to China under existing long-term deals.
QP is well on its way to return as the largest LNG producer by 2030.
The project is set to raise Qatar’s LNG production capacity from 77 million metric tonnes per year to 110 million metric tonnes per year by 2025.
QP also announced it would become the sole owner of QatarGas from next year.