QatarEnergy has signed a deal to supply Mitsui & Co. Energy Trading in Singapore with 11 million barrels of condensate per year for 10 years starting in April, Qatar's state-owned energy company said on Sunday.
Mitsui & Co. Energy Trading is a wholly-owned subsidiary of Mitsui & Co., a global conglomerate engaged in the energy sector and general trading, headquartered in Japan.
"This agreement marks a significant step in advancing synergy between our companies and fostering mutual growth and value for both parties," said Saad Sherida Al-Kaabi, CEO of QatarEnergy and Qatar's Minister of State for Energy Affairs.
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 liquefied natural gas (LNG) expansion project, the QatarEnergy statement said.
The statement didn't reveal the value of the deal.
In October 2023, Qatar announced raising its output of LNG by 60 percent or more to 126 million tons a year by 2027. Gas production is expected to begin after the expansion in 2026.
TotalEnergies signed a $1.5 billion agreement with Qatar Energy in September in 2022, under which it acquired a 9.3 percent stake in the South North Field project, which is the second phase of the gas field expansion.
In June 2022, the French energy giant became the first partner in the first phase of the expansion, North Field East, investing more than $2 billion for a 25 percent share. Qatar became one of the world's top LNG producers, alongside the US, Australia, and Russia.
Qatar Energy estimates the North Field holds about 10 percent of the world's known natural gas reserves.