Qatar set to strike second big LNG supply deal with China

Qatar is set to secure a second large gas supply deal with a Chinese state-controlled company in less than a year, the Financial Times reported on Tuesday.

According to the report, China National Petroleum Corporation (CNPC) and QatarEnergy are expected to sign a 27-year agreement on Tuesday, under which China will purchase 4 million metric tons of LNG a year from the Gulf state, the report said, citing people briefed on the matter.

QatarEnergy has said it plans to retain a 75 per cent stake in the North Field expansion, which will cost at least $30 billion, including construction of liquefaction export facilities.

The report added that, as Beijing’s ties with the United States and Australia, Qatar’s two biggest LNG export rivals, are strained, Chinese national energy firms increasingly see Qatar as a safer target for resource investment.

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