Taiwan’s CPC Corp. said Wednesday it would purchase more natural gas from Qatar and take a share in the massive North Field LNG expansion project being developed there.
The state-owned company signed a sales and purchase agreement (SPA) with QatarEnergy to buy 4 million metric tons/year (mmty) of liquefied natural gas over a period of 27 years.
CPC also signed a share SPA for a 5% interest in the equivalent of one 8 mmty liquefaction train at the North Field East (NFE) project, which is currently under construction and expected to come online in 2026.
NFE is part of a broader expansion that also includes North Field South and North Field West. The projects would boost Qatar’s LNG production capacity from 77 mmty to 142 mmty in 2030.
Over the last year, QatarEnergy has signed deals to supply more than 25 mmty of LNG to global buyers. CEO Saad Sherida Al-Kaabi said in May he expects to sign more contracts this year to underpin the country’s new capacity.
China Petroleum and Chemical Corp., ConocoPhillips, Eni SpA, ExxonMobil, Shell plc and TotalEnergies SE are among the project’s equity partners. QatarEnergy said Taiwan’s share in the liquefaction train would not impact other participating interests.
Taiwan, the fifth-largest buyer of Qatari LNG, plans to burn more natural gas as it aims to achieve net-zero emissions by 2050 and phase out nuclear power generation.
It currently imports about 20 mmty of the super-chilled fuel. Australia and Qatar are currently the country’s top two suppliers, providing Taiwan with about 8 mmty and 5 mmty, respectively, last year, according to Kpler.
