China Petroleum & Chemical Corporation (HKG: 0386, “Sinopec”) signed a long-term purchase and sales agreement with Qatar Petroleum on March 22 via online video conference to purchase 2 million tons of liquefied natural gas (“LNG”) every year for a term of 10 years.
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Zhang Yuzhuo, Chairman of Sinopec, noted the long-term LNG contract with Qatar Petroleum is a first in the company’s history and of significant importance:
“We look forward to further cooperation with Qatar Petroleum in the future. Sinopec has always advocated for the development of green and clean energy and the long-term LNG supply agreement will not only meet the needs of the Chinese market but will also demonstrate Sinopec’s commitment to a low-carbon, green, safe, responsible and sustainable development path,” remarked Zhang. “We firmly believe that it’s the responsibility of the entire industry and every company to reach peak carbon emissions and achieve carbon neutral, which is needed for the industry’s transformation and development.”
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of the State of Qatar, the president and CEO of Qatar Petroleum, expressed that signing the first long-term LNG contract with Sinopec has further consolidated the sound bilateral relations between the two countries, as well as the beginning of establishing a long-term, fruitful cooperative relationship between Qatar Petroleum and Sinopec.
China and Qatar’s cooperation in the energy sector started in 2009, and this cooperation will further enhance Qatar’s ability to supply the Chinese market to meet growing demand as well as highlighting Qatar Petroleum’s leading position in the industry.
China is a key and strategic energy partner for the State of Qatar throughout the entire energy value chain having supplied 62 million tons of LNG to China since 2009. With the government introducing a series of environmental protection measures, China’s LNG market will maintain steady growth in the future, bringing broad prospects for cooperation between both parties.
Qatar Petroleum is the national oil corporation of Qatar, established in November 1974. It is responsible for the development of the oil and gas industry in the State of Qatar and its main businesses include oil and gas exploration and development.
