China will buy 4 million metric tonnes of LNG from the Gulf Arab nation per year. Credit: Venti Views on Unsplash.

QatarEnergy has secured a large liquefied natural gas (LNG) supply deal from China National Petroleum Corporation (CNPC).

The Chinese government-backed company CNPC and the Qatar-based gas exporter have signed a 27-year deal. According to the agreement, China will buy 4 million metric tonnes of LNG from the Gulf Arab nation per year.

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The deal is second between QatarEnergy and China within a year.

The agreement will also see CNPC acquire an equity stake in the eastern extension of Qatar’s North Field LNG project, which is expected to increase Qatar’s production capacity by 43% from 77 million tonnes per annum (mtpa) to 110mtpa.

The stake is equal to 5% of one LNG train with an annual capacity of 8mtpa, the company said.

Qatar Energy Minister Saad al-Kaabi said: “We are pleased to embark on this partnership with CNPC and to build on the excellent relations between the People’s Republic of China and the State of Qatar.

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“These agreements demonstrate our unwavering commitment to our customers and partners and to our shared ambition for a sustainable future facilitated by a cleaner, and more eco-friendly energy source that would catalyse substantial socio-economic development.”

Similar to this agreement, QatarEnergy signed a 27-year supply contract for 4 million tonnes annually with Sinopec in November 2022.

Citing al-Kaabi, the Financial Times reported that before the end of 2023, Qatar is expected to sign long-term supply agreements with “several European countries”.

al-Kaabi added that QatarEnergy was close to signing deals with the UK, France and Italy.