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China’s CNPC, Qatar Petroleum, Shell sign 25-yr LNG supply deal

Forbes.com: China’s CNPC, Qatar Petroleum, Shell sign 25-yr LNG supply deal

Thomson Financial News
04.10.08, 11:52 PM ET

BEIJING (XFN-ASIA) – China National Petroleum Corp (CNPC), the parent of PetroChina, said it has signed an agreement with Qatar Petroleum and Royal Dutch Shell for a 25-year LNG supply deal.

CNPC will purchase 3 mln tons of LNG per year from the Qatargas 4 LNG project, in which Qatar Petroleum holds 70 pct and Shell 30 pct.

The deal, signed yesterday, was witnessed by Chinese Premier Wen Jiabao and Qatar Prime Minister Sheikh Hamad bin Jassem al-Thani, the company said in a statement posted on its website.

The Qatargas 4 LNG project is expected to produce 1.4 mln cubic feet of gas per day. It will entail the development of facilities capable of producing 7.8 mln tons of LNG per year, Shell said earlier.

Late yesterday, CNOOC (nyse: CEO – news – people ) said it also signed a framework agreement with Qatargas to purchase 2 mln tons of LNG.

China, the world’s second largest energy consumer, is increasingly turning to clean energy such as LNG as part of an effort to reduce greenhouse emissions.

China is seeking to boost gas consumption to 9 pct of total energy used from the current 3 pct.

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