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Qatar’s largest state oil company signed a 27-year sale and purchase agreement with China’s Sinopec on Monday.

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Saad al-Kaabi, head of QatarEnergy, told news outlets on Monday morning that the company had signed one of the longest-running agreements in the history of liquefied natural gas deals with a Chinese state-owned firm.

“Today is an important milestone for the first sale and purchase agreement for the North Field East project; that’s 4 million tons for 27 years for China’s Sinopec,” al-Kaabi told Reuters in Doha shortly before the deal was signed.

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“This means that long-term deals are here and are important for both the seller and the buyer,” the head of energy added. Qatar shares the North Field, part of the world’s largest gas field, with its northern neighbor, Iran.

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The company previously signed an agreement to build six additional LNG lines at East North Field, which will help increase Qatar’s liquefaction capacity to 126 million tons over five years. In addition, QatarEnergy has signed other agreements with North Field South partners for additional expansion.

“We are very excited about this deal with Sinopec because we have had a long-term relationship in the past and this takes our relationship to the next level as we have a sale and purchase agreement that will last until the 2050s,” said al- Kaabi to Reuters. “I think the recent volatility has made buyers understand the importance of a long-term offer.”

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Al-Kaabi said the firm is in talks with other buyers in China and Europe who want a stake in future expansion projects.

According to Reuters, QatarEnergy retains at least 75% of the shares in expansion projects at the North Field and provides buyers with up to 5% of the shares.

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