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Qatargas, China to Sign Long-Term LNG Deal

Qatargas, China to Sign Long-Term LNG DealQatargas, China to Sign Long-Term LNG Deal

Qatargas said on Monday it had agreed on a 22-year deal with PetroChina International Company, a unit of PetroChina Company, to supply China with around 3.4 million tons of liquefied natural gas annually, as the nation stepped up efforts to combat air pollution. The Qatari state-owned company will supply LNG from the Qatargas 2 project—a venture between Qatar Petroleum, Exxon Mobil Corp and Total—to receiving terminals across China, with the first cargo to be delivered this month, Reuters reported.

The deal allows flexibility in delivering LNG to Chinese terminals, including those in Dalian, Jiangsu, Tangshan and Shenzhen, using the Qatargas fleet of 70 conventional, Q-Flex and Q-Max vessels, the company said.

China requires LNG for its push to replace coal with cleaner burning natural gas, a way to reduce air pollution. After Beijing started the program last year, China has overtaken South Korea as the world’s second-biggest buyer of LNG. Chinese LNG imports may surge 70% to 65 million tons by 2020, according to consultancy SIA Energy. Last year, China imported a record 38.1 million tons, 46% more than the previous year.

Qatar, the world’s biggest LNG producer, is seeking buyers for a planned expansion of its output.

 

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