Page 4 - AsianOil Week 24 2022

AsianOil COMMENTARY AsianOil

Chinese firms reportedly in

advanced talks to invest in

Qatari LNG expansion

China’s leading state-owned energy companies are reported to be in

advanced talks with Qatar over a potential investment in the North
Field East liquefaction capacity expansion

INVESTMENT CHINA’S national oil companies (NOCs) are under discussion were worth billions. Two
reportedly close to investing in Qatar’s North other people told the news service that officials
WHAT: Field East (NFE) expansion project. NFE will from state-owned QatarEnergy had visited Sin-
China’s NOC are reported raise the Middle Eastern country’s liquefaction gapore earlier in June to meet Chinese compa-
to be in advanced capacity from 77mn tonnes per year to 110mn nies including CNPC and Sinopec, as well as
talks over investing in tpy and represents the single largest LNG project CNOOC Ltd and Beijing Gas Group, to discuss
Qatar’s North Field East in the world. The next expansion phase, North long-term LNG deals.
expansion project. Field South (NFS), is expected to take Qatar’s
liquefaction capacity to 126mn tpy by 2027. Securing supply
WHY: Chinese interest in investing in Qatar’s LNG The reports come as Chinese companies step up
Qatar is seeking to industry has been noted previously, but more efforts to lock in new long-term LNG supplies
expand its Asian LNG details have been reported by various media from a variety of sources. Mitigating against
customer base, while outlets this week. Three sources familiar with spot market volatility is thought to be one of the
China wants to diversify the matter told Reuters that Sinopec and China major drivers behind these efforts, and intensi-
imports and mitigate National Petroleum Corp. (CNPC) were in fying competition for LNG between Europe and
against spot market “advanced” talks with Qatar. They added that Asia is also a likely contributor.
volatility. the two Chinese companies were expected to A series of announcements about new
invest in 5% stakes each in two separate lique- offtake agreements involving large and small
WHAT NEXT: faction trains being built as part of the North Chinese players alike has been made since
If investments are Field expansion. Four trains are due to be built late 2021. These include major deals signed
finalised, this would be in total as part of the NFE project. between the US’ Venture Global LNG and Sin-
the first such partnership Separately, a source familiar with the sit- opec, followed by a separate agreement struck
between Qatar and China. uation told Bloomberg that the investments by the US company with CNOOC. Indeed,

The two Chinese
companies are
reportedly expected
to invest in 5% stakes
each in two separate
liquefaction trains being
built for NFE.

P4 www. NEWSBASE .com Week 24 17•June•2022