Page 9 - DMEA Week 39 2021

DMEA SUPPLY DMEA

QP signs 15-year LNG supply

contract with CNOOC

MIDDLE EAST STATE-OWNED Qatar Petroleum this week investments – to develop its initial liquefaction
signed a 15-year sales and purchase agreement capacity, but now has the expertise to go it alone.
(SPA) to supply 3.5mn tonnes per year (tpy) of Qatar is also increasing its role in its own
LNG to a subsidiary of China National Offshore regional market with a 15-year, 3mn tpy sup-
Oil Corp. (CNOOC). The deal was signed with ply deal with Kuwait Petroleum Corp. (KPC)
CNOOC Gas and Power Trading & Marketing also beginning in January, the first long-term
for delivery of cargoes beginning in January agreement signed for Kuwait’s new LNG Import
2022. terminal (LNGI), which is expected to achieve
The deal takes the total volume of LNG deals commercial launch in March.
agreed by QP during the first nine months of This week’s deal was signed by HE Saad
2021 to 14mn tpy, with deliveries of 12.75mn tpy Sherida Al-Kaabi Qatar’s Minister of State for
due to begin in January 2022. The total volume Energy Affairs and QP’s president and CEO, and
covered by these deals over their 10- to 20-year CNOOC chairman Wang Dongjin.
terms is more than 170mn tonnes of LNG. During the virtual signing ceremony,
According to a research note by consultancy Al-Kaabi said: “We are pleased to further build
IGM Energy, at 52.5mn tonnes, the CNOOC upon our strong relationship with CNOOC with
contract is the largest by volume. the signing of this new long-term LNG supply
Unsurprisingly, all of these agreements have agreement. We are especially proud to continue
been signed with Asian countries as Qatar seeks to meet the People’s Republic of China’s growing
to strengthen its position in the region as its need for cleaner energy that LNG provides and
North Field Expansion (NFE) project increases are thankful to CNOOC for partnering with us
the emirate’s liquefaction capacity from 79mn as their trusted LNG supplier.”
tpy currently to 110mn tpy by 2025/26 and Since the shipment of the first LNG cargo to
126mn tpy by 2027. NFE is the world’s sin- CNOOC in September, QP said that as of August
gle-largest LNG project. this year, Qatar has delivered a total of 715 LNG
QP took a final investment decision (FID) cargoes to China, of which 270 shipments con-
on NFE alone earlier this year having previ- taining more than 24mn tonnes of LNG have
ously relied on IOCs’ expertise – as well as their been delivered to CNOOC.™

Month Customer Destination Duration (years) Start Date Annual Volume (mn tpy)

Feb-21 Vitol Bangladesh Not disclosed Late-21 1.25
Feb-21 PSO Pakistan 10 Jan-22 3
Mar-21 Sinopec China 10 Jan-22 2
Jun-21 Shell China 10 Jan-22 1
Jul-21 CPC Taiwan 15 Jan-22 1.25
Jul-21 KOGAS South Korea 20 Jan-22 2
Sep-21 CNOOC China 15 Jan-22 3.5
Total 14

Source: IGM Energy Research Note

Week 39 30•September•2021 www. NEWSBASE .com P9