China, QatarGas Strike Another LNG Sales Deal
QatarGas will take 1 mtpa over 15 years from new plant at Caofeidian.
A subsidiary of China Suntien Green Energy is set to sign a sale and purchase deal with Qatar Liquefied Gas for 1 mtpa of LNG for 15 years. The contract between S&T International Natural Gas Trading and Qatargas, a subsidiary of QatarEnergy, will start around the end of 2022, with prices linking to international crude prices.
The deal comes days after QatarEnergy signed a 1-mtpa LNG deal with China’s Guangdong Energy Group Natural Gas, which starts delivery from 2024 for 10 years.
China Suntien Green Energy is a Hebei provincial government-controlled natural gas distributor and wind power producer which is building an LNG receiving terminal at Caofeidian in Tangshan city in northern Hebei province.
The project will be divided in three phases and has a total LNG handling capacity of 12 mtpa. It comprises construction of two berths capable of receiving LNG carriers of 80,000–266,000 m3 and 20 LNG storage tanks with a capacity of 200,000 m3 each.
The first phase of the Caofeidian LNG project, with an LNG-handling capacity of 5 mtpa, comprising one LNG receiving berth and four LNG storage tanks, is scheduled to start operations by the end of 2022.
China Suntien Green Energy is also building a 176-km natural gas pipeline that connects the Tangshan LNG terminal with other trunk natural gas pipelines in the country including the China-Russia natural gas pipeline’s eastern route and Shaanxi-Beijing natural gas pipeline.
State-owned PetroChina operates an LNG terminal in Tangshan, which has a total nameplate LNG receiving capacity of 10 mtpa after its phase 3 was launched in August.