QatarEnergy and China’s Sinopec have agreed to sign a 27-year contract to supply liquefied natural gas to the world’s most populous country. The competition for Qatari gas is thus gaining momentum.
Qatar will provide China with 27 years of supplies
“Today is an extremely important milestone for the Northeast Field project. The deal is to supply gas to China’s Sinopec for the next 27 years,” QatarEnergy chief Saad al-Kaabi told Reuters. According to him, this is clear evidence that long-term contracts are beneficial for both the seller and the buyer.
Natural gas could flow to Europe
Kaabi also said that negotiations with other potential LNG buyers from China and Europe are ongoing. “The recent volatility in the markets has made buyers understand that a long-term contract is important for energy security,” the QatarEnergy chief added.
According to him, it is not possible to rely only on renewable sources because of their instability. “The wind doesn’t blow all the time, just like the sun doesn’t shine all the time,” Kaabi said, adding that Qatari liquefied is a starting point even in efforts to reduce greenhouse gas emissions.
