Qatar Petroleum (QP) Wednesday entered into a 15-year LNG, or liquefied natural gas, sale and purchase agreement (SPA) with Taiwan's CPC Corporation, for the supply of 1.25mn tonnes per annum (MTPA) of LNG.
Pursuant to the agreement, LNG deliveries will commence in January 2022, and will be delivered to CPC’s receiving terminals. Taiwan, which is the fifth largest LNG importer, is boosting its LNG imports as it plans to considerably enhance electricity generation using clean fuel.
The SPA further demonstrates Qatar’s continued commitment to meeting the growing energy requirements of its customers around the world in the form of reliable long-term LNG supplies.
The SPA was signed by HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, the president and chief executive of QP; and Shun-Chin Lee, the president and acting chairman of CPC, during a virtual ceremony attended by Sheikh Khalid bin Khalifa al-Thani, chief executive of Qatargas, as well as senior officials from both sides.
“We are pleased to enter into this long term LNG SPA, which is another milestone in our relationship with CPC, which dates back to almost three decades. We look forward to commencing deliveries under this SPA and to continuing our supplies as a trusted and reliable global LNG provider,” al-Sada said.
Since the first delivery in March 2006, CPC has so far received more than 63mn tonnes of LNG from Qatar.
“We are grateful to CPC and all our customers around the world for selecting us as their trusted LNG supplier of choice," al-Kaabi said.
QP had last month signed a long-term SPA with Shell for the supply of 1MTPA of LNG to China for ten years, the deliveries of which will also commence in January 2022 to various LNG terminals in China.
Qatar’s North Field, which has recoverable reserves of more than 900tn cubic feet, is the world's largest non-associated natural gas field. QP has already announced its expansion (NFE).
The total estimated investment for the NFE is $28.75bn, which will increase Qatar's total LNG output by 43% to 110mn metric tonnes per annum (Mtpa) by 2025 from the current level of 77Mtpa.
The project will require the construction of four new LNG trains as well as offshore gas production facilities and pipelines to the onshore liquefaction trains.
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