Today: Thursday, 30 May 2024 year

China interested in stake in Qatari LNG project

China interested in stake in Qatari LNG project

Chinese state-owned energy companies have begun negotiations to buy a stake in Qatar’s liquefied natural gas (LNG) project – North Field East (NFE).

It is noted that this will be the first partnership of this level between a consumer country and a supplier. Sources added that Chinese firms CNPC and Sinopec could enter the project with 5% stakes if they make large investments.

Through this project, China can reduce its dependence on suppliers such as the US and Australia. In addition, one of the largest fuel suppliers, Russia, is under sanctions, which also complicates the possibility of cooperation.

In the first half of 2022, Qatar ranked second in terms of LNG supplies to China, behind only Australia. Despite China’s small stake in the project, the country could gain access to the world’s largest LNG project, as well as be able to enter into long-term contracts for the supply of fuel.