Qatar signed world’s ‘longest’ gas supply deal with China

  • QatarEnergy announced a 27-year natural gas supply deal with China, calling it the “longest” ever seen as it strengthened ties with Asia while Europe scrambles for alternative sources.
  •  The state energy company will send four million tonnes of liquefied natural gas annually from its new North Field East project to China Petroleum and Chemical Corporation (Sinopec).
  • Asian countries led by China, Japan and South Korea are the main market for Qatar’s gas, which is increasingly being sought by European countries since Russia’s invasion of Ukraine. 
  • Negotiations with European countries have struggled as Germany and others baulked at signing the type of long-term deals made with Asian nations.
  •  North Field is at the centre of Qatar’s expansion of its liquefied natural gas production by more than 60 percent to 126 million tonnes a year by 2027.

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