Asian cunning and Arab pragmatism: Qatar and China made a deal

Asian cunning and Arab pragmatism: Qatar and China made a deal In the face of global competition for energy resources, Qatar and China have signed a 27-year contract for the supply of LNG. This is the longest-term deal in the history of the industry. Beijing is seeking to secure LNG supplies so as not to buy raw materials on the spot market in situations of uncertainty about price developments in Asia in the coming years.Last year, Qatar announced it was expanding production at the largest natural gas field it shares with Iran. LNG production capacity will be increased from 77 mln tons to 110 mln tons per year. The second stage  the North Field South Project (NFS)  should add another 25-30 million tons per year to the annual volume.Today, private Chinese companies that have signed long-term contracts for the purchase of LNG in the United States, instead of forming reserves, sell the surplus to Europe, Japan, and South Korea and receive a good short-term profit. Public business is obliged to think strategically.Unlike Europe, Qatar has always preferred long-term deals with clients. QatarEnergy now guarantees Chinese Sinopec LNG supplies of approximately 4 million tons of LNG per year, which will be produced as part of the North Filed East project. The volume of the transaction is estimated at $60 billion.Head of QatarEnergy stressed that the company has retained a 75% stake in the expansion and may transfer up to 5% of its stake to some buyers. The current contract with China can be considered a component of the integrated partnership in NFE, so that Beijing, with the help of Sinopec, can participate in negotiations for an equity stake in this business.All of this is happening at a time when global competition for LNG is intensifying as Europe seeks to secure supplies of non-Russian gas. Nothing personal, just business.Profits to yall!#ForexChief #QatarEnergy #stocks #Sinopec #forexnews #NorthFiledEast #worldnews #StopLoss