Liquefied natural gas (LNG) giant Qatargas has committed to supply about 3.4 million tonnes of LNG annually from the Qatargas 2 project in Ras Laffan, Qatar to China under a 22-year sale and purchase agreement (SPA) with PetroChina International, a unit of state-owned PetroChina.
Qatargas 2 project will supply the LNG under the SPA until 2040 to various receiving terminals in China. The LNG project, which was inaugurated in 2009, is a joint venture between Qatar Petroleum, ExxonMobil and Total.
Qatargas CEO Khalid Bin Khalifa Al-Thani said: “This is an important milestone for Qatargas. We are very pleased that LNG from Qatargas continues to contribute towards meeting the huge demand for energy in the world’s second largest economy.
“With China expected to become one of the world’s largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term.”
Qatargas, which is owned by Qatar Petroleum, expects the first cargo to be delivered to China during the course of this month. The company said that the SPA gives flexibility in delivering LNG to various receiving Chinese terminals, including the Dalian, Jiangsu, Shenzhen and Tangshan LNG receiving terminals, by using its fleet of 70 conventional, Q-Flex and Q-Max LNG vessels.
Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “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.”
The Qatargas 2 project comprises two LNG mega trains, each having a capacity of 7.8mtpa of LNG and 0.85mtpa liquefied petroleum gas (LPG), condensate production of 90,000 barrels per day (bpd). It is also supported by a fleet of 14 Q-Flex and Q-Max ships.