The head of Qatar Renewable Energy, Saad Al-Kaabi, told Reuters on Monday that the company signed a 27-year sale and purchase agreement with China’s Sinopec, the longest in the history of liquefied natural gas deals.
“Today is an important milestone for the first sale and purchase agreement for the Northeast Field project, amounting to 4 million tons for a period of 27 years, for the Chinese company Sinopec,” Al-Kaabi said in an interview in Doha, shortly before the deal was signed.
“This indicates that there are long-term deals here that are important for both the seller and the buyer,” he said.
The North Field is part of the largest gas field in the world that Qatar shares with Iran, which calls its share South Pars.
Qatar Energy earlier this year signed deals for the North East Field, the first and largest phase of a two-phase North Field expansion plan that includes six LNG trains that will increase Qatar’s liquefaction capacity to 126 million tons per year by 2027. from 77 million.
It also later signed contracts with partners in the North South Field, Phase II expansion.
Al-Kaabi said, “We are very happy with this deal with Sinopec because we have had a long-term relationship in the past and this takes our relationship to new heights as we have a spa that will continue until 2050.”
Al-Kaabi said that negotiations with other buyers in China, Europe and the world who want to secure supplies are continuing.
“I think the recent volatility has prompted buyers to understand the importance of having long-term supply,” he said.
Al-Kaabi added that negotiations are underway with many entities to obtain a share in the Gulf state’s expansion project.
Qatar Power has retained a 75% stake overall in the expansion and could give up up to 5% of that stake to some buyers.
Sources told Reuters in June that major Chinese national oil companies were in advanced talks with Qatar to invest in the Northeast field.