Qatargas signs LNG supply deal with PetroChina International

Qatar Petroleum subsidiary Qatargas has signed a 22-year sale and purchase agreement (SPA) to supply liquefied natural gas (LNG) to PetroChina International Company.

Under the contract, the company will deliver around 3.4 million tonnes of LNG per annum from the Qatargas 2 project to different receiving terminals across China until 2040, with the first cargo to be delivered later this month.

Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “This agreement underscores Qatar’s trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world’s largest LNG producer, supplying safely and reliably across the globe.

“We are very pleased to be of support to the People’s Republic of China in its quest to secure LNG supplies to meet the country’s growing energy requirements.

“As we announce this long-term SPA, we look forward to continuing to supply reliable and clean energy to China and to countries all over the world that seek to use the cleanest fossil fuel available to meet their energy needs.”

Qatargas will use its fleet Q-Flex and Q-Max LNG vessels to deliver the shipments to multiple terminals, including Dalian, Jiangsu, Tangshan and Shenzhen.

The supply contract comes at a time when China is increasingly focusing on cleaner energy sources to tackle air pollution, with LNG imports growing by more than 40% last year.

China’s gas consumption grew by 15% during the period.

Established in 1984, Qatargas operates 14 LNG trains and has a production capacity of 77 million tonnes per year.