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Qatar to supply LNG to China for 27 yrs in world's 'longest' deal China
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Qatar to supply LNG to China for 27 yrs in world's 'longest' deal

India Blooms News Service | @indiablooms | 22 Nov 2022, 08:29 pm

China inked a $60 billion deal with Qatar on Monday to buy Liquified Natural Gas (LNG) for 27 years at a time when Europe is struggling to secure alternative resources, media reports said.

State-run QatarEnergy announced the agreement with its Chinese counterpart, China Petroleum and Chemical Corporation (Sinopec), calling it the world’s “longest-ever” deal.

QatarEnergy would send four million tonnes of LNG from its new North Field East project to China starting 2026, media reports said.

China, Japan and South Korea remain the biggest market for Qatar’s gas, which is witnessing an increasing demand in Europe since Russia’s invasion of Ukraine.

However, European countries such as Germany couldn’t make headway as they hesitated to sign long-term deals like those reached with Asian nations, the reports said.

North Field is at the core of Qatar’s LNG production expansion plans by 60 percent to 126 million tonnes in the next five years.

China is also the first company to seal an LNG-supply deal for North Field East.

Sinopec’s chairman Ma Yongsheng revealed the company also sought a full share of Qatar’s North Field South project, which is dominated by western energy giants, media reports said.

He said it was a “milestone” accord as Qatar is the largest producer of LNG and China was the largest consumer of LNG, reports added.