Qatar Petroleum signed the biggest long-term LNG contract with CNOOC while Tellurian Investments signed the most contracted volumes in 2021, revealed GobalData’s Long-Term LNG Contracts Review, 2021 report
GlobalData’s report has revealed that the biggest long-term LNG contract signed this year was between Qatar Petroleum and CNOOC Ltd in September 2021. According to the contract, Qatar Petroleum will supply 3.5 million tonnes per annum (mtpa) of LNG from 2022 to 2036 from the country’s Ras Laffan III liquefaction terminal to CNOOC Ltd. The report also confirms that China-based Sinopec Corp signed the most long-term LNG contracts in 2021, gaining five million tonnes of imported LNG per annum (mtpa).
Bhargavi Gandham, oil and gas analyst at GlobalData, explained, “Buyers are, once again, looking towards long-term contracts to hedge price volatility and ensure guaranteed supply. The trend is expected to continue in 2022 as LNG prices in key markets such as Asia and Europe continue to be very high.”
Bhargavi continued, “In terms of LNG purchase, the majority of long-term LNG contracts completed by Sinopec were signed with Venture Global LNG as part of China’s efforts to reduce the country’s carbon emissions. The country needs to substantially increase natural gas share in its energy mix in order to achieve its goal of becoming carbon neutral by the year 2060.”
After Sinoptec, Vitol Group signed the second-highest number of long-term LNG contracts, gaining 4.3 mtpa, and Royal Dutch Shell signed the third highest, with 4.0 mtpa. Among LNG sellers, Tellurian Investments sold the largest total volume of LNG, at nine mtpa, in three contracts with Gunvor Group Limited, Royal Dutch Shell, and Vitol Group, respectively. Tellurian Investments’ LNG will be supplied from the Driftwood terminal in Louisiana.
Bhargavi added, “State-owned companies in Qatar have mostly signed long-term LNG contracts in 2021 to supply key demand centres in Asia such as China and South Korea. These companies can sign more contracts in 2022 as the global economy recovers driving further LNG demand.”
