China Petroleum & Chemical Corporation (Sinopec) has received the first LNG cargo from the ten-year LNG sale and purchase agreement with QatarEnergy.
Back in March 2021, Sinopec signed the agreement with Qatar’s state-owned petroleum company QatarEnergy, formerly known as Qatar Petroleum.
The deal specifically stated that the ten-year LNG deliveries will start in January 2022. So, the first LNG cargo arrived on 15 January at Sinopec’s Tianjin LNG terminal.
According to Reuters , the Al Sahla LNG tanker delivered 94,000 tonnes of cargo from Qatar.
To remind, the parties agreed upon the supply of 2 million tons per annum (mtpa) of LNG to China. This is Sinopec’s first long-term LNG SPA from Qatar.
In December, QatarEnergy signed two more long-term LNG supply deals with Chinese companies. Firstly, it signed one with the Chinese utility Guangdong Energy. This will bring 1 mpta of LNG to the country, starting in 2024 and lasting for ten years.
Secondly, it signed an agreement with Chinese firm S&T International. Under this 15-year SPA, it will provide one mtpa of LNG to China as well. The deliveries will start in late 2022.