Qatar Signs Another Deal to Power China

Jennifer Leakos
By the power of our friendship cartoon
Courtesy of imgflip

Qatar and China have further cemented their geopolitical bond by signing a deal to be friends forever… or at least the next 27 years.

What happened: China National Petroleum Corporation (CNPC) agreed to purchase 4 million tonnes of liquefied natural gas (LNG) annually from QatarEnergy this past week. Included in the deal is a 5 percent ownership stake in one of the LNG trains for the North Field East expansion project.

  • Shared with Iran, the North Field is one of the world’s largest gas fields, holding an estimated 51 trillion cubic feet of natural gas and 50 billion barrels of condensate.

This is the second deal in the past 12 months that Qatar has brokered with China – last November, a similar deal was also made with Sinopec.

LNG is still LiNGering in the news

Over the past year and a half, countries have been looking to secure more stable gas supplies as Russia’s were constrained. LNG exporters suddenly became more popular than the kid on the playground with the Tamagotchi.

Why Qatar? It’s is one of the top 3 largest exporters of LNG. Like men’s tennis, the title of top exporter has been alternating between three top players for the past decade: Australia, the US, and Qatar

Most of Qatar’s LNG exports currently go to Asia, but the country is looking to increase its ties to Europe.

Friends off:  Qatar used to be a long-standing member of OPEC but left in 2019 to move away from oil production and focus on increasing its gas capacity.

  • The shift helped the country grow its economy and pay the $300 billion price tag to host the World Cup last year.

What’s next: The United States is poised to be the world’s largest exporter. But if Qatar manages to secure more deals in the upcoming year, it’s very possible that Qatar can give the US (and Australia) a run for their money in 2023 – which is a whole lot of moolah.