QatarEnergy to Sign Long-term Asian LNG Supply Deal on Thursday - Source

Maha El Dahan
Tuesday, May 30, 2023

QatarEnergy will sign a long-term liquefied natural gas (LNG) supply deal with an Asian entity on Thursday, a source with direct knowledge of the matter told Reuters.

The deal will be one of many to come this year as the major LNG producer secures sales for its North Field expansion project, the source said on Tuesday. 

Competition for LNG ramped up last year after the Ukraine war, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent's imports. 

But Asia, with an appetite for long-term sales and purchase agreements, has been the winner so far in securing gas from Qatar's massive production expansion project, set to boost its liquefaction capacity by more than 60%. 

Thursday's contract will be the second to Asia since QatarEnergy started selling the gas expected to come on stream from the North Field expansion project. 

The two-phase plan will raise Qatar's liquefaction capacity to 126 million tonnes per year by 2027 from 77 million.

Qatar's first Asian deal, with Sinopec, the longest to be signed at 27 years for the supply of 4 million tonnes a year, was followed by the state-owned Chinese company taking a 5% stake in the equivalent of one North Field East LNG train. 

QatarEnergy's sales and purchase agreements to supply Germany with around 2 million tonnes of LNG annually through a partnership with ConocoPhillips cover at least a 15-year period. 

Qatar is already the world's top LNG exporter and its North Field expansion project will boost that position and help guarantee long-term supplies of gas globally. 

The North Field is part of the world's biggest gas field that Qatar shares with Iran, which calls its share South Pars.

QatarEnergy chief Saad al-Kaabi said last week there was big demand for LNG and that he expects by the end of the year to have signed supply deals for all the gas expected to come on stream from the North Field expansion. 


(Reuters - Reporting by Maha El Dahan; Editing by Kirsten Donovan and David Holmes)

Categories: Offshore Energy LNG Middle East Industry News Activity Asia Gas

Related Stories

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Chinese Contractor Secures Offshore Oil and Gas ‘Mega Deal’ from QatarEnergy

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Woodside Finds South Korean Partners to Advance LNG Value Chain

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com