QATAR’S position in global energy industry continues to get stronger. Qatar Petroleum (QP) has signed several LNG supply deals with many countries around the world, which demonstrates Qatar’s growing importance in global energy market. Qatar Petroleum (QP), on Wednesday, entered into a long-term sale and purchase agreement with CNOOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation (CNOOC), for the supply of 3.5 million tons per annum (MTPA) of LNG over a 15-year period starting January 2022. China is considered a major customer for Qatar and a strategic partner in the energy sector. Qatar’s relationship with CNOOC extends back to September 2009 when the first LNG cargo was delivered to CNOOC in China.
As of August 2021, Qatar has delivered a total of 715 LNG cargoes to China, of which 270 cargoes (more than 24 million tons of LNG) were delivered to CNOOC. In July, QP had entered into a new, 20-year Sale and Purchase Agreement with Korea Gas Corporation (KOGAS) for the supply of 2MTPA of LNG to South Korea. In the same month, QP had signed a 15-year LNG Sale and Purchase Agreement with CPC Corporation, Taiwan (CPC) for the supply of 1.25MTPA of LNG. In June this year, Qatar Petroleum had entered into a long-term Sale and Purchase Agreement with Shell for the supply of one million tons per annum of LNG to the People’s Republic of China for 10 years. Qatar is moving ahead with its plans to expand the production of gas.
Early this year in February, QP signed a deal for developing its $28.75bn North Field East Project (NFE), which is the world’s largest LNG project. The expansion will raise Qatar’s LNG production capacity from 77 MTPA to 110 MTPA. The NFE project represents the first phase of LNG expansion, while the second phase, is referred as the North Field South Project.
In the second phase Qatar’s LNG production capacity will increase from 110MTPA to 126MTPA by 2027. In August this year, QP announced the awarding of a major engineering, procurement, and construction (EPC) contract for its NFE Project to Tecnicas Reunidas SA, a Madrid-based contractor.
The NFE project is unique in the LNG world because of its advanced environmental characters, including significant carbon capture and sequestration capacity. Qatar started decarbonising its LNG a while ago, and it currently captures and sequesters 2 million tons per annum of CO2, which will grow to 9 million tones by 2030.
