Qatar signs world’s ‘longest’ gas supply deal with China

Source: The post is based on the article “Qatar signs world’s ‘longest’ gas supply deal with China” published in The Hindu on 22nd November 2022.

What is the News?

China has signed a landmark $60 billion agreement for purchases of liquefied natural gas from Qatar.

What is the deal signed between Qatar and China on LNG?

China has reached a $60 billion agreement with Qatar to secure Liquefied Natural Gas(LNG) flows.

The deal is for 27 years, making it China’s longest LNG supply agreement till date.

The deal also marks the longest gas supply agreement in the history of the LNG industry.

Note: Europe is also trying to replace Russian pipeline gas with LNG from Qatar though talks with Qatar have stalled amid reluctance from Germany to commit to long-term contracts.

– Many EU governments want to phase out fossil fuels and believe LNG deals would work against their climate goals.

What is North Field?

The North Field is part of the world’s biggest gas field that Qatar shares with Iran which calls its share South Pars.

North Field is at the center of Qatar’s expansion of its liquefied natural gas production by more than 60% to 126 million tonnes a year by 2027. 

China is the first country to seal a deal for North Field East.