Petrochemical and plastics giant Sinopec (Beijing, China; www.sinopec.com) has clinched its second long-term liquefied natural gas (LNG) agreement with QatarEnergy (QE, Doha; www.qatarenergy.qa), one that also includes an equity stake.

Like the deal signed in Doha in April 2023, the pact inked in Shanghai covers activity in Qatar’s North Field South (NFS) expansion project. It additionally includes a sales and purchase agreement (SPA) calling for the Qatari state-owned company to deliver 3 mn t/y of LNG to Sinopec’s receiving terminals in China over a 27-year period.

Related: Qatar finalises gas North Field Expansion contracts

A prior SPA from November 2022 covered the supply of 4 mn t/y of LNG over 27 years, which at the time was said to be the longest LNG supply agreement in the history of the industry. The deal included a 5% equity stake for Sinopec in a production train in the expanded exploration area. 

As part of the latest agreement, QatarEnergy is to transfer to Sinopec a 5% interest in a joint venture that owns the equivalent of 6 mn t/y of LNG production capacity in the NFS project.

In a statement, QatarEnergy said the share transfer “will not dilute the participating interests of any of the other shareholders.” 

This past June, company signed a supply pact with China National Petroleum Corp (CNPC, Beijing; www.cnpc.com.cn/en) for 4 mn t/y of gas from the North Field, beginning in 2026, and also awarded the partner a 5% stake. 

Officials from both countries have hailed the bilateral agreements as part of the growing relationship between the State of Qatar and the People’s Republic of China.