The Peninsula reported that Qatargas has signed MOU with China National Offshore Oil Company for additional long term supplies of LNG to China.

The company also signed a separate MoU with Petrochina International Company Limited to supply 2 million tonnes of LNG per annum to China.

Mr Abdullah bin Hamad Al Attiyah deputy PM and minister of energy and industry of Qatar, who was in Beijing to attend the opening of Qatargas’ Representative Office in China was present at the signing of both the MoUs.

Mr Fu Chengyu president of CNOOC and Mr Zhang Yongxiang VP of Petrochina signed the respective MoUs with Mr Faisal M Al Suwaidi chairman and CEO of Qatargas. Under the terms of the MoU with CNOOC, Qatargas intends to supply an additional 3 million tonnes of LNG per annum to CNOOC commencing in 2013. In addition to this base volume, Qatargas and CNOOC will contemplate the sale and purchase of an additional 2 million tonnes of LNG per annum.

These volumes combined with an existing long term supply commitment of 2 million tonnes of LNG agreed under a Sales and Purchase agreement signed in 2008 will potentially take the total volume of the Qatari LNG to be supplied to CNOOC to seven million tones per annum.

Mr Al Suwaidi said that “Only last month we celebrated the arrival of Qatari LNG to China with CNOOC at an unloading ceremony held at the Dapeng Terminal, Guangdong Province. This event marked the first time that one of Qatargas’ state of the art Q-Flex carriers delivered LNG to China and represented the beginning of long-term stable LNG supplies from Qatar to China.”

Mr Chengyu said that “It’s another milestone in the expanding partnership between CNOOC and Qatargas which will substantially help bring closer energy cooperation between the 2 countries.”

The initial supply of LNG to Petrochina is expected to commence with the start up of Train 7, under the Qatargas 4 Company. The timing of the supply of the two million tonnes of LNG as contemplated by the MOU is expected to start in the H1 of the next decade.

After signing the MoU with Petrochina Mr Al Suwaidi said that “I am extremely excited that we are able to announce the strengthening of our relationship with PetroChina on the same day we have celebrated the opening of our Representative Office in the People’s Republic of China.”

(Sourced from the Peninsula)