Jun 26, 2023

Qatar Energy is poised to secure a second large LNG supply deal with a Chinese state-controlled company, according to Reuters.

PetroChina: Monthly Chart

PetroChina: Monthly Chart

The stock price of PetroChina will jump in 2023, and the CNPC subsidiary could benefit from the terms of the Qatar deal. The stock has resistance ahead of the 10 price level.

China National Petroleum Corporation (CNPC) and Qatar Energy signed a 27-year agreement last week. The agreement marks the second major gas supply deal for the Chinese state-controlled company in less than a year. Under the latest agreement, China will purchase 4 million metric tonnes of liquefied natural gas (LNG) per year from Qatar.

Qatar Energy chief Saad al-Kaabi said that CNPC will also take an equity stake in the eastern expansion of Qatar’s North Field LNG project.

“Today, we are signing two agreements that will further enhance our strong relations with one of the most important gas markets in the world and a key market for Qatari energy products,” al-Kaabi said.

In November, the Middle Eastern firm signed a 27-year supply agreement with China’s Sinopec for delivery of 4 million metric tonnes per year.

PetroChina and CNPC could benefit from closer ties to the Middle East over the coming years. In April, Sinopec became the first Asian energy company to become a partner in the expansion project.

Petrochina’s share price [601857] closed up 2% with the announcement of the deal. The company’s Hong Kong-traded stock [0857] also finished the day higher by 1.3%.

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