State-owned Qatar Petroleum (QP) on Monday signed an agreement to supply China Petroleum & Chemical Corp., aka Sinopec, with 2 million tons (Mt) of liquefied natural gas (LNG) annually for a term of 10 years. 

The deal is yet another bold move for QP as it looks to strengthen its hand in the future of the global gas market. While Qatar began supplying customers in China with LNG in 2009, the sale and purchase agreement (SPA) announced Monday is its first long-term deal with Sinopec, a major Chinese LNG importer. 

Under the agreement, deliveries will begin in January 2022 and be shipped to Sinopec’s LNG terminals in China. The country is the world’s second largest LNG importer, accounting for 17.4% of global market share in 2019, according to the International Group of...