China's Sinopec Signs 27-year LNG Supply Deal with QatarEnergy

LNG tanker "Mozah" transports a gas shipment to Europe (QatarEnergy)
LNG tanker "Mozah" transports a gas shipment to Europe (QatarEnergy)
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China's Sinopec Signs 27-year LNG Supply Deal with QatarEnergy

LNG tanker "Mozah" transports a gas shipment to Europe (QatarEnergy)
LNG tanker "Mozah" transports a gas shipment to Europe (QatarEnergy)

The state-owned Chinese company Sinopec said it had concluded a new 27-year agreement with QatarEnergy to supply and purchase liquefied natural gas (LNG).

Under the agreement, the two companies will cooperate in the second phase of the North Field expansion project, which will supply 3 million tons annually of LNG to Sinopec.

Sinopec also said it would obtain a 5 percent stake in the second phase of the joint project.

The deal, signed at the China International Import Expo in Shanghai, is the third long-term supply deal between Sinopec and Qatar Energy, the world's top LNG supplier.

The two parties signed a 10-year agreement to buy and sell liquefied natural gas in 2021 and a 27-year agreement last year.

The North Field is part of the world's largest gas field, which Qatar shares with Iran, which calls its part the South Pars Field.

Recently, QatarEnergy signed multiple agreements with foreign and Western companies to sell LNG in light of the energy crisis, scarcity of supply, and uncertainty surrounding the global economic scene.

On Oct. 23, QatarEnergy signed a deal to supply Italy's Eni with gas for 27 years, following similar sales this month to supply the Netherlands via Shell and France through TotalEnergies.

Qatar signed 27-year deals to supply 3.5 mtpa from 2026 to Shell and TotalEnergies, its largest and most extended European gas supply deals.

Under the two agreements, gas shipments will be delivered to the Gate LNG receiving terminal in the Dutch port of Rotterdam starting in 2026 for 27 years.

Notably, Emir of Qatar Sheikh Tamim bin Hamad Al Thani laid the foundation stone for the North Field expansion project last October, raising the country's LNG annual production capacity from 77 million tons to 126 million tons annually in 2026.

The project includes six giant production lines, each with a production capacity of 8 million tons per year, four of which are in the North-East Field Expansion Project and two in the North-South Field Expansion Project.

The major expansion will add 48 million tons annually to global LNG supplies.

It will produce 6,500 tons per day of ethane gas, which will be used as a raw material in the local petrochemical industries.

The project will also produce approximately 200,000 barrels per day of liquefied petroleum gas (propane and butane) and about 450,000 barrels per day of condensates, in addition to large quantities of helium and pure sulfur gas.



Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.