Qatar to Sign More Long-Term LNG Contracts This Year, QatarEnergy CEO Says 

Qatar's Minister of State for Energy Affairs and President & CEO of QatarEnergy Saad al-Kaabi, attends a session at the Qatar Economic Forum in Doha on May 15, 2024. (AFP)
Qatar's Minister of State for Energy Affairs and President & CEO of QatarEnergy Saad al-Kaabi, attends a session at the Qatar Economic Forum in Doha on May 15, 2024. (AFP)
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Qatar to Sign More Long-Term LNG Contracts This Year, QatarEnergy CEO Says 

Qatar's Minister of State for Energy Affairs and President & CEO of QatarEnergy Saad al-Kaabi, attends a session at the Qatar Economic Forum in Doha on May 15, 2024. (AFP)
Qatar's Minister of State for Energy Affairs and President & CEO of QatarEnergy Saad al-Kaabi, attends a session at the Qatar Economic Forum in Doha on May 15, 2024. (AFP)

Qatar has not had difficulty securing long-term liquefied natural gas (LNG) contracts and will sign more this year, QatarEnergy CEO and State Minister for Energy Saad al-Kaabi said at an economic forum on Wednesday.

"We've actually secured 25 million tons of long-term LNG sales (in the last 12 months) and I can tell you also on this podium that we're signing more this year," he said.

State-owned QatarEnergy has been signing supply deals with European and Asian partners for gas that is expected to come onstream from its massive North Field expansion, part of the world's largest natural gas field which Qatar shares with Iran, which calls it South Pars.

Qatar, one of the world's largest LNG exporters, announced an additional expansion of its LNG production in February that will add 16 million metric tons per year to its original plans, bringing total capacity to 142 million tons per year from 77 million tons.

Kaabi said he sees big future demand for LNG and Qatar would continue to assess its gas reservoirs for possible future growth.

"We are very bullish on demand going forward," Kaabi said.

Kaabi also reiterated that should technical evaluations show Qatar could further expand production it would.

"If there is more, we probably will do more," he said.

Competition for LNG had ramped up since the beginning of the war in Ukraine in February 2022.

Europe, in particular, needs vast amounts of the fuel to help replace the Russian pipeline gas that had made up almost 40% of the continent's imports.

On Wednesday, Kaabi said he saw a future need for more LNG in European markets.

"The comfort that they get in Europe is because they had two very warm winters and they filled up all the storages and they didn't need to use much of it," he said.

"So if you have two harsh winters or normal winters ... you're always going to need a lot more LNG. And the world will need much more LNG with the growth and I don't see an oversupply."



Aramco, Sinopec and Yasref Sign Venture Framework Agreement for Petrochemical Expansion

Photo by SPA
Photo by SPA
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Aramco, Sinopec and Yasref Sign Venture Framework Agreement for Petrochemical Expansion

Photo by SPA
Photo by SPA

Saudi Aramco, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) announced the signing of a Venture Framework Agreement (VFA) to pave the way for a major petrochemical expansion at Yasref, in Yanbu, on the west coast of Saudi Arabia.
According to a press release from Aramco, the agreement, coinciding with Yasref's 10th anniversary, seeks to advance engineering studies for the development of a fully integrated petrochemical complex at Yasref, a joint venture owned by Aramco (62.5%) and Sinopec (37.5%). The project aims to maximize operational synergies and create additional value by introducing a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex. This is expected to enhance Yasref's ability to meet the growing demand for high-quality petrochemical products, SPA reported.
President and CEO of Saudi Aramco Amin H. Nasser said, "The Yasref Venture Framework Agreement further deepens and elevates our strategic partnership with Sinopec. The planned expansion project solidifies our commitment to product innovation and diversification. As we look forward to strengthening our collaboration with Sinopec in making Yasref a leading refining and petrochemicals joint venture, we aim to contribute to growing Saudi Arabia's position as a global leader in energy and chemicals."
Aramco Downstream President Mohammed Y. Al Qahtani stated, "The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030. In partnership with Sinopec, we aim to advance cutting-edge refining and petrochemical capabilities to deliver high-value products, create new opportunities, drive industrial innovation, and enable economic transformation. This highlights our strategic, long-term partnership with Sinopec."
Sinopec President Zhao Dong emphasized, "Yasref, a flagship joint venture symbolizing China-Saudi energy cooperation, has not only served as a key driver for Saudi Arabia's local economic growth but also actively advanced petrochemical industry upgrades. We expect the Yasref expansion project to unlock new dimensions of collaborative potential as we navigate the energy transition. Sinopec and Aramco are poised to establish a world-class, integrated refining and petrochemical complex distinguished by comprehensive competitive advantages, aiming to redefine traditional energy cooperation models and expand new frontiers for more sustainable development."
The release also noted that Yasref is one of several strategic partnerships between Aramco and Sinopec. These collaborations include Sinopec Senmei (Fujian) Petroleum Company (SSPC), Sinopec SABIC Tianjin Petrochemical Co. (SSTPC), Fujian Refining & Petrochemical Company (FREP), and a new integrated refining and petrochemical complex under development in Fujian Province, China. Through these ventures, the two groups aim to strengthen energy security, fuel industrial innovation, foster long-term cooperation, and contribute to the global economy.