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China becomes first Asian shareholder in Qatar’s mega-LNG project



The landmark deal comes at a time when countries across the globe, including several Arab states, have switched to the yuan for bilateral trade with China

By News Desk - April 12 2023


(Photo Credit: QatarEnergy)



China’s state-owned oil and gas giant Sinopec signed a definitive partnership agreement with QatarEnergy on 12 April to purchase a five percent stake in the North Field East (NFE) expansion, part of the world’s largest liquefied natural gas (LNG) project.

The deal was signed by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, and Dr. Ma Yongsheng, the Chairman of Sinopec, during an official ceremony in Doha.

“The People’s Republic of China is a major driver of the global energy markets as well as being one of the most important gas markets in the world and is a key market for Qatari energy products,” Kaabi said, adding that the agreement “[prioritizes] long-term strategic partnerships and alignment with world-class partners from China.”

For his part, Yongsheng highlighted that the blueprint for the strategic partnership between Beijing and Doha was established last year when Chinese President Xi Jinping met with Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani during the first China-Arab Summit and China-GCC Summit.

“The signing of this agreement today is a concrete move to carry forward what has been agreed between the two heads of state and deepen the partnership between Sinopec and QatarEnergy. It is another milestone after the signing of the long-term LNG SPA from the NFE project in November 2022, marking the integrated cooperation achieved by both companies on the NFE project,” the Sinopec chairman said.

The NFE is part of the world’s biggest gas field that Qatar shares with Iran, which calls its share South Pars. It will boost Qatar’s annual LNG production capacity from 77 million tons to 110 million tons once it begins operations in 2026.

Other investors for the $30 billion expansion project include Shell, Exxon Mobil, and TotalEnergies. QatarEnergy previously said it could give up to a 5 percent stake in the project to “value-added partners.”

Western media reports earlier this year revealed that China’s National Petroleum Corps (CNPC) was in advanced talks to purchase LNG from QatarEnergy for 30 years.

In November, Doha and Beijing signed a 27-year deal for purchases of LNG worth $61 billion.