China National Petroleum Corporation (CNPC) and QatarEnergy are expected to sign a 27-year agreement, which will allow China to purchase 4 million metric tons of liquefied natural gas (LNG) a year, Reuters reported on Tuesday.
Sources familiar with the deal told Reuters that CNPC also will take an equity stake in the eastern expansion of Qatar’s North Field LNG project. The stake is the equivalent of 5 percent of one LNG train with a capacity of 8 million tonnes per year.
Despite selling equity shares in the North Field expansion to foreign firms, QatarEnergy plans to retain a 75 percent stake in the project, which will cost at least $30 billion, including the construction of liquefaction export facilities.
In April, China’s Sinopec signed a deal to become a “value-added” partner in Qatar’s North Field expansion project.
