QatarEnergy to transfer Sinopec stake in gas field expansion project

QatarEnergy will transfer a five percent stake in the NFE gas field expansion project to Sinopec.

Qatari state oil and gas company QatarEnergy has signed an agreement with China Petroleum & Chemical Corporation (Sinopec), according to which the Qatari company will transfer to the Chinese a 5% stake in the North Field expansion project in the East (NFE), follows from a QatarEnergy press release.

«QatarEnergy has announced the signing of a final partnership agreement with the China Petrochemical Corporation (Sinopec) on the North Field Expansion project in the East (NFE), the largest project in the history of the LNG industry,» the statement said.

In accordance with the terms of the agreement, QatarEnergy will transfer to Sinopec a 5% stake in the equivalent of one line of the NFE pipeline with a capacity of 8 million tons per year. This agreement will not affect the interests of other shareholders.

Qatar is currently working to expand production at its Severnoye gas field in the Persian Gulf, which it shares with Iran. As a result, Qatar is expected to produce 110 million tons of LNG per year by 2026 instead of the current 77 million tons. Qatar exports the bulk of its gas to Asian countries.

QatarEnergy controls all components of Qatar’s oil sector, including exploration, production, refining, transportation, and storage.