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  • 13-04-23

    Sinopec to Acquire 5 percent Stake in Qatar's North Field East Expansion Project

    (MENAFN) China's state-owned oil and gas company, Sinopec, is set to acquire a 5 percent stake in Qatar's North Field East expansion project, the world's largest liquefied natural gas (LNG) project. The announcement was made by state news agency QNA on Wednesday. QatarEnergy had previously stated that it could offer up to a 5 percent stake in the project to interested parties, which QatarEnergy CEO Saad Al-Kaabi referred to as "value-added partners". Sinopec has not yet commented on the matter in response to a Reuters request.

    Sinopec's interest in the North Field East expansion project stems from a November 2021 deal signed with QatarEnergy, in which QatarEnergy agreed to supply 4 million tons of LNG annually for 27 years, marking the longest LNG contract ever signed by Qatar. At the time, Sinopec referred to the agreement as an "integrated partnership," indicating that the Chinese company may be considering acquiring a stake in Qatar's North Field expansion export facility.

    QatarEnergy has signed five deals for the North Field East, the larger and first phase of the two-phase North Field expansion plan, which includes six LNG trains that will increase Qatar's liquefaction capacity to 126 million tons per year by 2027 from 77 million tons. The company has also signed three partnership agreements on the Gulf Arab state's North Field South expansion.

    While QatarEnergy plans to keep a 75 percent stake overall in the North Field expansion project, which is expected to cost at least USD30 billion, including the construction of liquefaction export facilities, the 5 percent stake acquisition by Sinopec is a significant move for the Chinese company. The North Field is part of the world's largest gas field, which Qatar shares with Iran, known as South Pars.

    MENAFN13042023000045014228ID1106000317

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