Qatar agrees to supply China with natural gas for next 22 years

Qatar has announced a 22-year deal to supply China with liquefied natural gas (LNG), as the gas-rich emirate battles an economic blockade by neighbouring states.
2 min read
10 September, 2018
The deal comes after Qatar pledged to invest some 10 billion euros in Germany [Getty]

Qatar has announced it will supply China with liquefied natural gas (LNG) for the next 22 years, as the gas-rich emirate battles an economic blockade by neighbouring states.

State-owned Qatargas made the announcement in a statement on Monday, saying it would supply China with around 3.4 million tonnes of LNG annually for 22 years.

"This agreement underscores Qatar's trusted capability in ensuring energy security to countries around the world, particularly in Asia," Qatargas CEO Saad Sherida al-Kaabi said.

"We look forward to continuing to supply reliable and clean energy to China and to countries all over the world that seek to use the cleanest fossil fuel available to meet their energy needs," he added.

China wants LNG for a push to replace coal with cleaner-burning natural gas, in a bid to reduce its air pollution crisis.

Qatargas is the world's largest liquefied natural gas producer with a production capacity of 77 million tonnes per year.

The deal comes days after Qatar pledged to invest some 10 billion euros ($11.6 billion) in Germany.

For more than a year, Qatar faced a land, air and sea blockade imposed by Saudi Arabia and its allies.

The bloc has cut off ties with Qatar accusing it of supporting "terrorist" groups, which Doha strongly denies.

The cold shoulder from its neighbours has prompted Qatar to fall back on more distant allies, with the US, China and Germany being its three biggest trading partners.

On Friday, German Chancellor Angela Merkel confirmed Berlin's plans to build an LNG terminal in Germany.