Page 10 - GLNG Week 40 2021

GLNG MIDDLE EAST GLNG

QP strengthens Asian

ties with pair of

Chinese deals

PROJECTS & STATE-OWNED Qatar Petroleum (QP) has
COMPANIES signed a pair of deals with Chinese companies in
the last two weeks that highlight the role of Asian
players in Doha’s expansion plans.
Supply deal
Last week, QP signed a 15-year sale and pur-
chase agreement (SPA) to supply 3.5mn tonnes
per year (tpy) of LNG to a subsidiary of China
National Offshore Oil Corp. (CNOOC). The
deal was signed with CNOOC Gas and Power
Trading & Marketing for delivery of cargoes
beginning in January 2022.
The deal takes the total volume of LNG deals
agreed by QP during the first nine months of
2021 to 14mn tpy, with deliveries of 12.75mn tpy
due to begin in January 2022. The total volume the signing of this new long-term LNG supply
covered by these deals over their 10- to 20-year agreement. We are especially proud to continue
terms is more than 170mn tonnes of LNG. to meet the People’s Republic of China’s growing
According to a research note by consultancy need for cleaner energy that LNG provides and
IGM Energy, at 52.5mn tonnes, the CNOOC are thankful to CNOOC for partnering with us
contract is the largest by volume. as their trusted LNG supplier.”
Unsurprisingly, all of these agreements have Since the shipment of the first LNG cargo
been signed with Asian countries as Qatar seeks to CNOOC in September, QP said that as of
to strengthen its position in the region as its August this year, Qatar has delivered a total of
North Field Expansion (NFE) project increases 715 LNG cargoes to China, of which 270 ship-
the emirate’s liquefaction capacity from 79mn ments containing more than 24mn tonnes of
tpy currently to 110mn tpy by 2025/26 and LNG have been delivered to CNOOC.
126mn tpy by 2027.
NFE is the world’s single largest LNG project. Vessel expansion
QP took a final investment decision (FID) on With such expansion plans already in train, QP
QP this week NFE alone earlier this year, having previously this week kicked off the largest ever fleet expan-
relied on IOCs’ expertise – as well as their sion in the history of the LNG sector, to cater to
kicked off the investments – to develop its initial liquefaction growing production.
largest ever fleet capacity, but now has the expertise to go it alone. The company placed an order for the first
HE Saad Sherida Al-Kaabi, Qatar’s Minister four LNG carriers under this programme with
expansion in the of State for Energy Affairs and QP’s president Hudong-Zhonghua Shipbuilding Group Co., a
and CEO, noted recently that two further LNG subsidiary of the China State Shipbuilding Corp.
history of the LNG trains are likely to be announced in Q1 2022, (CSSC). The deal is the first with a Chinese ship-
with QP expecting to add a total of 64mn tpy of yard and follows an April 2020 agreement with
sector. LNG, including the company’s participation in Hudong to reserve ship construction capacity.
the Golden Pass project in the US. The contract is valued in excess of $770mn.
Qatar is also increasing its role in its own In an official statement, QP said: “These four
regional market with a 15-year, 3mn tpy sup- carriers are the first batch of orders in Qatar
ply deal with Kuwait Petroleum Corp. (KPC) Petroleum’s massive LNG shipbuilding pro-
also beginning in January, the first long-term gramme, which will cater for future LNG fleet
agreement signed for Kuwait’s new LNG Import requirements for the North Field expansion
terminal (LNGI), which is expected to achieve projects as well as for existing vessel replace-
commercial launch in March. ment requirements.”
This week’s deal was signed by Al-Kaabi and With the April 2020 deal covering “a signifi-
CEO, and CNOOC chairman Wang Dongjin. cant portion” of Hudong’s LNG ship construc-
During the virtual signing ceremony, tion capacity out to 2027, QP has previously
Al-Kaabi said: “We are pleased to further build said that it could spend up to $3.02bn with
upon our strong relationship with CNOOC with the shipyard.™

P10 www. NEWSBASE .com Week 40 08•October•2021