Doha [Qatar]: State-run energy company Qatar Energy announced on Wednesday that Sinopec will invest in the eastern expansion of Qatar's North Field liquefied natural gas (LNG) project. As per the statement presented by Qatar Energy, the state-owned Chinese gas giant might purchase around 5% stake in roughly which is equivalent of one North Field East LNG train, according to a statement from Qatar Energy.
However, the largest gas field in the world, which Qatar and Iran share, includes North Field. The South Pars field refers to the area of the field that is in Iran. Saad al-Kaabi, the energy minister of the Gulf state and CEO of QatarEnergy, had previously stated that the company could offer for about 5% stakes in its North Field expansion to "value-added partners."
The longest LNG contract signed by Qatar is about 4 million tonnes of LNG per year for 27 years, agreed to by QatarEnergy and Sinopec last November. In addition to claiming that the deal was a part of an "integrated partnership," Sinopec also suggested that it might buy a stake in Qatar's North Field export facility. The first and larger phase of the two-phase North Field expansion, North Field East, was the subject of five agreements signed by QatarEnergy last year. The expansion includes a total of six LNG trains, increasing Qatar's annual liquefaction capacity from around 77 million tonnes to about 126 million tonnes by 2027.
Additionally, three partnership agreements for the North Field South expansion of the Gulf Arab state were signed. According to QatarEnergy, the stake is being transferred from its holding to Sinopec and will not have an impact on the stakes of the other shareholders in North Field East. The event today highlights QatarEnergy's commitment to strengthening its ties with important LNG consumers while prioritizing long-term strategic alliances and partnerships with world-class partners from China, according to QatarEnergy's Kaabi. As per to QatarEnergy, it intends to keep around 75% stake in the North Field expansion.