Qatar will supply millions of tons of liquefied natural gas to China over several decades. It is one of the largest LNG deals ever. Oil and gas companies Shell and ExxonMobil can also benefit from this.
State-owned Qatar Energy will send Chinese state-owned Sinopec a total of 4 million tons of liquefied natural gas, also known as liquefied natural gas (LNG), from 2026. This will happen over 27 years for USD 60 billion. This makes it the most extended supply agreement China has ever concluded and the largest in terms of volume. The gas for China will come from a field in which Shell and ExxonMobil have also invested.
Chinese LNG imports fell this year precisely due to the strict zero-covid policy. As a result, factories came to a standstill or production was disrupted. However, demand is expected to recover next year and grow over the next ten years.
There is a run for LNG worldwide, particularly among major exporters such as Qatar and the United States. As a result, the prices for liquid gas have risen recently. For example, European countries are trying to replace Russian gas with LNG now that the gas supply from Russia has come to a standstill due to the war in Ukraine.