Qatar has emerged as an important and reliable partner for countries across the globe in providing clean energy. Qatar continues to sign LNG supply deals with countries and companies. The rise in number of deals demonstrates the trust of countries and companies on Qatar for LNG.
Last week, Qatar Petroleum entered into a 15-year LNG Sale and Purchase Agreement with CPC Corporation, Taiwan (CPC) for the supply of 1.25 million tons per annum of LNG.
Pursuant to the agreement, LNG deliveries will commence in January 2022, and will be delivered to CPC’s receiving LNG terminals. This SPA further demonstrates the State of Qatar’s continued commitment to meeting the growing energy requirements of its customers around the world in the form of reliable long-term LNG supplies. Since the first LNG delivery in March 2006 to date, CPC has received more than 63 million tons of LNG from Qatar.
Last month, Qatar Petroleum had entered into a long-term Sale and Purchase Agreement with Shell for the supply of 1 million tons per annum of LNG to the People’s Republic of China for ten years. LNG deliveries will commence in January 2022 to various LNG terminals in China.
Qatar Petroleum plans to supply the LNG volumes contracted under this agreement from its Qatargas 1 venture, which will become 100% owned by Qatar Petroleum as of January 1st 2022. China is considered a major customer for the State of Qatar and a strategic partner in the energy sector. With the conclusion of this agreement, China will be supplied with approximately 12 MPTA of LNG under long term SPAs from Qatar.
Qatar is moving ahead with its plans to expand the production of gas. Early last month, 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 110 MTPA to 126 MTPA by 2027.
The NFE project is unique in the LNG world because of its advanced environmental characters, including significant carbon capture and sequestration capacity. Qatar started decarbonizing its LNG a while ago, and that it currently captures and sequesters two million tons per annum of CO2, which will grow to 9 million tons by 2030.
