China Signs 27-Year LNG Import Contract Worth 83 Trillion Won with Qatar

Loading LNG onto an LNG carrier at Ras Laffan Port in northern Qatar. [Image source=AP Yonhap News]

[Asia Economy Reporter Lee Chun-hee] On the 21st, China signed the longest and largest liquefied natural gas (LNG) import contract in history with Qatar, spanning 27 years and worth 83 trillion won, Bloomberg reported.

On the same day, China's state-owned China Petroleum & Chemical Corporation (Sinopec) announced at a virtual event that QatarEnergy will supply 4 million tons of LNG annually for 27 years starting in 2026. QatarEnergy stated, "This contract will further strengthen the excellent relationship between China and Qatar" and "will help meet China's growing energy demand."

Bloomberg explained, "This is the longest and largest LNG supply contract in China's history," adding, "Based on current market prices, this contract amounts to $61 billion (approximately 82.8685 trillion won)."

The LNG supplied to Sinopec will come from Qatar's North Field East gas field. Qatar's North Field gas field holds 10% of the world's natural gas reserves.

China was the world's largest LNG importer last year, and Qatar is considered one of the world's largest LNG producers alongside the United States and Australia. The global LNG market is currently regarded as reaching its supply limits. There is expected to be almost no new production before 2026.

European countries, after imposing sanctions on Russia for invading Ukraine, have seen energy prices surge and are scrambling to secure stable energy import routes to replace Russian gas, seeking heating fuel from Qatar and others. Chinese state-owned companies are also busy signing contracts with energy suppliers amid a policy to strengthen energy security.

This content was produced with the assistance of AI translation services.