QatarEnergy’s historic expansion project, which ceremoniously commenced last month, boasts the world’s most extensive natural gas reserves.
Qatar is set to provide a substantial 40% of all new LNG supplies by the end of the decade, the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi said.
The statement was made during the official’s keynote speech at the Sinopec Forum in Shanghai, where he stressed the future landscape of energy and emphasised the significance of the natural gas Qatar provides.
“By 2029, about 40% of all new LNG supplies will be provided by Qatar. Therefore, we believe that a stronger relationship between the world’s largest LNG producer and the world’s largest energy consumer is a natural development of the realities shaping the energy map today.”
During the forum, QatarEnergy finalised a 27-year agreement to supply natural gas to China’s Sinopec.
The deal will see an annual supply of three million tonnes of gas, marking a sustained commitment between the two nations. The agreement not only ensures a long-term gas supply to Sinopec but also cements the company’s stake in the North Field gas expansion project.
This comes as part of a series of long-term LNG deals signed by Qatar in the past year. Last month, QatarEnergy entered into a long-term agreement to provide the Netherlands with up to 3.5 million tons of liquefied natural gas (LNG) annually starting in 2026, extending for a duration of 27 years.
This announcement came shortly after Qatar formalised a comparable long-standing arrangement with France’s TotalEnergies SE, in which Doha also solidified a 27-year LNG supply agreement. Starting from 2026, Qatar will supply France with up to 3.5 million tonnes of LNG per annum, with the partnership set to last until 2053.
This deal underscores Qatar’s strengthening position in the European energy market, especially following a 15-year commitment made in November of the previous year between Qatar and German utilities companies Uniper and RWE.
That contract ensures the annual delivery of 2 million tonnes of LNG to Germany, and represented the first major long-term LNG supply agreement to an EU nation since the onset of the conflict in Ukraine.
Al-Kaabi, who is also the President and CEO of QatarEnergy, highlighted the flourishing partnership between Qatar and China, particularly spotlighting the North Field expansion project and consequential LNG sales agreements.
He also conveyed the integral connection between Qatar’s energy strategy and the Asian demand, which is largely driven by China’s burgeoning economic activity.
“The State of Qatar has firmly supported the role of natural gas as a central component of any energy mix on the road to a realistic energy transition. We are providing the world with the cleanest hydrocarbon source of energy, which enjoys both economic and environmental qualities to support sustainable growth and a better future,” said Al-Kaabi.
Al-Kaabi did not shy away from acknowledging the criticality of the environmental and energy security challenges posed today, underscoring QatarEnergy’s dedication to safeguarding the planet.
“We believe that energy transition is one of the most pressing challenges of our time…It is about a reasonable and realistic shift to cleaner alternatives to power our economies, while at the same time balancing energy security, affordability, and sustainability.”
The minister concluded his address by stressing the necessity for international collaboration in the transition to sustainable energy.
“The transition to a cleaner, more sustainable energy future cannot be achieved in isolation. It requires open co-operation among nations, industries, and stakeholders towards a common goal.”
The forum, held on the fringe of the China International Import Expo, was orchestrated by the China Petrochemical Corporation (Sinopec).
