Qatar’s is world leader in the global LNG market and the agreements signed by Qatari companies will make sure that the country will maintain its leading role in future also.
Qatargas had announced, on September 10, a long-term Sale and Purchase Agreement (SPA) with PetroChina International Company Limited, a unit of PetroChina Company Limited (PetroChina), to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per annum.
Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China, with the first cargo to be delivered to the Peoples Republic of China later this month.
Qatargas is the worlds largest LNG producing company with an annual production capacity of 77 million tonnes while PetroChina is Chinas largest gas supplier, supplying 66 percent of China’s domestic demand in 2017.
Agreement with Chinese companies is crucial because it is expected that China will become one of the worlds largest gas markets. Chinese gas consumption grew by 15 percent in 2017 alone, with LNG imports growing by more than 40 percent.
This SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term.
Commenting on this landmark agreement, President and CEO of Qatar Petroleum and Chairman of the Qatargas Board of Directors Eng. Saad bin Sherida Al Kaabi jad said that the agreement underscored Qatar’s trusted capability in ensuring energy security to countries around the world, particularly in Asia.
The pact also highlights Qatar’s unique position as the worlds largest LNG producer, supplying safely and reliably across the globe. The SPA allows flexibility in delivering LNG to various receiving terminals across China, including the Dalian, Jiangsu, Tangshan and Shenzhen LNG receiving terminals, utilising Qatargas fleet of 70 conventional, Q-Flex and Q-Max LNG vessels.
On September 12, Qatar Petroleum had signed three-year sale agreement to supply Indias Haldia Petrochemicals Ltd. (HPL) in West Bengal, with a total of 600,000 tonnes of Light Naphtha starting in 2018.
The long-term supply agreement, signed by QP for and on behalf of Qatar Petroleum for the Sale of Petroleum Products Company (QPSPP), is the first QPSPP naphtha feedstock sale to an end-user in India, highlighting the company’s push for more direct sales with established end-users.
HPL is one of the largest petrochemical companies in India. It has a competitive modern naphtha based Petrochemical Complex located 125 kilometers from Kolkata, with a total capacity equivalent to 700,000 tonnes per annual of ethylene. New agreements show that country across the globe rely on Qatar in meeting their energy needs.
