PetroChina, Qatar Agree on Supply Deal



China's national oil company PetroChina Co. signed a long-term liquefied natural gas supply deal with Qatar's national Qatargas Operating Co.

PetroChina will receive LNG supplies from Qatargas' yet-to-go-online Dalian receiving terminal, which has a planned capacity of three million metric tons per year and is due to start operations in 2012.

Worried by pollution and a growing reliance on coal and crude oil, China wants natural gas to account for 5.3% of the country's national energy mix by 2010, up from 2.8% in 2005.

Construction of the receiving terminal was recently approved by Qatar's National Development and Reform Commission because its LNG supplies were recently guaranteed, a Dalian government official told the Wall Street Journal.

Thailand oil and natural gas giant PTT PCL agreed earlier this week to buy one million metric tons per year of LNG from Qatargas beginning in 201.


RELATED COMPANIES