Page 14 - MEOG Week 08 2023

MEOG NEWS IN BRIEF MEOG

CNPC set to seal mega insulate from market volatility, diversify negotiating supply deals with many potential
Kaabi has said the state energy company is
supply while optimising between the state
Qatari LNG deal owned units,” said Toby Copson, global head buyers and they would be announced when
of trading at Trident LNG.
agreements are reached.
China National Petroleum Corp (CNPC) Wei Xiong, analyst at Rystad Energy, said State-controlled CNPC, China’s top gas
is close to finalising a deal to buy liquefied although CNPC dominates China’s piped gas importer, last year also stepped up gas imports
natural gas (LNG) from QatarEnergy over imports, it still needs other import options to from Russia, by pipeline and tanker, snapping
nearly 30 years from the Middle Eastern mitigate any potential risk, in line with China’s up supply that was no longer going to Europe
exporter’s massive North Field expansion energy policy on supply diversification. due to sanctions amid Moscow’s war on
project, three people with knowledge of the Therefore the deal will eventually strengthen Ukraine.
matter said. the energy giant’s competitiveness. Chinese customs data showed the country’s
If sealed, this would be the second such Sinopec said in November the gas imports of Qatari LNG surged 75% last year
deal between major LNG exporter Qatar and purchase agreement was part of an “integrated from 2021 to 15.7 million tonnes, making up
the world’s no.2 LNG buyer, as Beijing looks partnership”, which indicated the Chinese a quarter of the nation’s total imports, while
to beef up gas supply and diversify its sources firm could be considering acquiring a stake in China’s total LNG imports shrank nearly 20%.
in a drive to replace coal and cut carbon Qatar’s North Field expansion export facility. In contrast, imports from Australia and
emissions. The two companies have yet to announce the United States dropped 30% and 77%
CNPC’s talks follow a deal announced any stake investment. respectively from 2021, to 21.9 million tonnes
last November by China’s Sinopec, in which As Beijing’s ties with the United States and and 2.09 million tonnes.
QatarEnergy agreed to supply 4 million Australia, Qatar’s two biggest LNG export QatarEnergy last year signed five deals
tonnes of LNG annually for 27 years, the rivals, are strained, Chinese national energy with international majors for the North Field
longest duration LNG supply contract ever firms increasingly see Qatar as a safer target project, a two-phase expansion plan that
signed by Qatar. for resource investment. will boost Qatar’s liquefaction capacity to
“CNPC has agreed on the major terms Sinopec and CNPC would not opt for such 126 million tonnes per year by 2027 from 77
with Qatar in a deal that will be very similar long-duration supply contracts unless they million tonnes.
to Sinopec’s,” said a Beijing-based state-oil were also hoping to acquire small stakes in Each of the five majors – TotalEnergies
official who declined to be named as he is not the North Field expansion export facility, a , ExxonMobil, ConocoPhillips, ENI and
authorised to speak to the media. second Beijing-based state gas official said. Shell – signed a joint-venture agreement
CNPC declined to comment. QatarEnergy QatarEnergy has maintained a 75% stake with QatarEnergy that includes an equity
did not respond to a request for comment. overall in the North Field expansion, that will investment in liquefaction export facilities.
“This is a good move for CNPC, securing cost at least $30 billion, and could give up to a REUTERS
additional long term supply from a reliable 5% stake to some buyers, QatarEnergy Chief
and well positioned partner. This will further Executive Officer Saad al-Kaabi has said.

P14 www. NEWSBASE .com Week 08 22•February•2023