Qatar Petroleum (QP) has entered into a 15-year LNG sales and purchase agreement (SPA) with Taiwan state-owned energy company CPC Corp for the supply of 1.25 mta of LNG
The SPA was signed by Qatari Minister of State for Energy Affairs and QP president and chief executive Saad Sherida Al-Kaabi and CPC president and acting chairman Shun-Chin Lee during a virtual ceremony
Pursuant to the agreement, LNG deliveries will commence in January 2022, and will be delivered to CPC’s receiving LNG terminals.
Commenting on this occasion, Mr Al-Kaabi said, “We are pleased to enter into this long-term LNG SPA, which is another milestone in our relationship with CPC, which dates back almost three decades. We look forward to commencing deliveries under this SPA and to continuing our supplies as a trusted and reliable global LNG provider.”
Since the first LNG delivery in March 2006 to date, CPC has received more than 63M tonnes of LNG from Qatar.
Taiwan is a major importer of LNG. In 2020, it imported 17.76M tonnes of LNG, about 5% of the global LNG trade, according to GIIGNL. In January, CPC Corp received its first cargo transported by Fuji LNG under a 25-year SPA with US LNG producer Cheniere Energy under which it will receive 2 mta until 2045. The SPA between CPC and Cheniere was signed in 2018.
CPC has mandated a 50% share for natural gas in fuelling in Taiwan’s total electricity generation by 2025. It has committed to diversification of gas supply sources and layout to ensure a stable supply of natural gas for domestic demand.
In 2020, Taiwan received 4.73M tonnes of LNG from Australia, second only to Qatar’s 4.99M tonnes. Other top suppliers are Russia, Papua New Guinea and Indonesia, followed by the US.
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