LNG Discussions Between China and Qatar
LONDON, UK / ACCESSWIRE / July 7, 2021 / As China looks to the future, the goal is to cut down on the country’s carbon footprint as much as possible. Considering that much of the nation still relies on coal, there’s a lot to be done to convert to cleaner sources of fuel.
To that end, liquified natural gas (LNG) is a viable alternative for wide-scale change and China has already begun to increase supplies from a number of sources. Turab Musayev has been in commodities trading for more than 15 years. We have asked him to comment on how Qatar and China might partner together in the future to further that supply even more.
Qatar, LNG, and China
Qatar has long relied on international companies for help in building its LNG industry. However, these original sources have cooled as of late, leading Qatar to map out alternative strategies. The country is in the midst of building out the world’s single biggest LNG expansion and seeking companies to back the endeavor in return for a stake of the profits.
Qatar has already supplied more than 62 million tons of LNG to China since its first delivery in the fall of 2009, and the country remains one of the key drivers for growth in Qatar’s energy sector. The expansion is expected to strengthen Qatar’s position as the biggest exporter in the world, with a purported output of 110 million tons per year by 2026.
Turab Musayev says this comes as Australia fleshes out its own LNG exporting industry, closing in on Qatar’s lead in just the last few years. Qatar has invited Chinese firms to discuss supply deal agreements, and business owners have answered the call.
China isn’t just pivoting toward cleaner fuel in the commercial world. Government officials are looking to bring down emissions in every household and business. Qatar Petroleum, a state-owned organization, has already signed an agreement with Sinopec for 2 million tons of LNG every year for 10 years.
A Quickly Growing Market
Qatar is essentially replacing support from the west with support from the East, giving them more freedom to dictate terms to the partnerships that still remain in Western countries. China is essentially ramping up its mission to become a major player in the fight against climate change.
The Arab country depends on international partners to secure its wealth, and Turab Musayev knows how important these talks are. While officials from Qatar can likely fund the project on their own, they would prefer to have support from countries that they’ve already established ties with. The partnership between the two countries could mean big things for LNG as it becomes the go-to fuel for the country.
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SOURCE: Turab Musayev
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