Page 14 - MEOG Week 08 2023
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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.

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