QatarEnergy, the state-owned energy company of Qatar, has signed a long-term deal to supply Japan’s Mitsui & Co with 11 million barrels of condensate per year for 10 years starting in April, the company said on Sunday.
Condensate, a light crude oil, is often used in the production of gasoline and other fuels. Qatar is one of the world’s largest producers and exporters of condensate, as well as liquefied natural gas (LNG).
The deal includes an option to increase the volume of condensate QatarEnergy exports to Mitsui & Co when additional volumes become available from Qatar’s vast North Field LNG expansion project, the statement said.
Saad Sherida Al-Kaabi, CEO of QatarEnergy and Qatar’s Minister of State for Energy Affairs, announced the signing of a long-term sales agreement with one of their strategic Japanese partners. This agreement further solidifies their decades-long relationship with Mitsui.
Japan is the largest buyer of Qatari LNG, accounting for about 30 percent of the country’s total exports of the super-chilled fuel. Mitsui & Co. is one of the major Japanese trading houses involved in the LNG business, as well as other sectors such as metals, machinery, chemicals, and food.
Mitsui & Co. said last October it was considering buying a stake in the North Field expansion project as a way to ensure a stable supply of LNG.
Al-Kaabi, in December, said that QatarEnergy was talking to several Asian buyers about becoming “value-added” partners with a stake in the expansion project.
The North Field expansion is expected to boost Qatar’s production to 126 million metric tons of LNG per annum (mtpa) by 2027, from 77 mtpa now, cementing its position as the world’s top LNG exporter.
QatarEnergy also said on Sunday it had awarded a contract to Samsung C&T Corporation for the expansion of the LNG storage and loading facilities at Ras Laffan Industrial City as part of the North Field project.
The contract, valued at about $2 billion, covers the engineering, procurement, construction, and commissioning of three LNG tanks, three loading berths, and associated facilities, the statement said.
QatarEnergy said the contract award marked a “major milestone” in its efforts to enhance its LNG capabilities and meet the growing global demand for clean energy.
Qatar, a tiny but wealthy Gulf nation, has been pursuing a diversification strategy to reduce its reliance on hydrocarbons and develop other sectors such as tourism, finance, education, and health.
The country, which will host the FIFA World Cup next year, has also invested heavily in infrastructure, transport, hospitality, and security to prepare for the mega-event.
Despite the challenges posed by the COVID-19 pandemic, Qatar has maintained its economic resilience and stability, thanks to its prudent fiscal policies and robust financial buffers.
The International Monetary Fund expects Qatar’s real GDP to grow by 2.4 percent in 2021, following a contraction of 3.7 percent in 2020 due to the global economic recovery from the health crisis.
Qatar has also been active in supporting international efforts to combat the pandemic, providing humanitarian and medical aid to more than 100 countries and organizations.
As a responsible member of the global community, Qatar has pledged to share its surplus of COVID-19 vaccines with the countries in need, in coordination with the World Health Organization and other partners.
Source: Reuters
