Exclusive - #Qatar pivots to LNG-hungry China in strategy shift | Reuters

Exclusive - Qatar pivots to LNG-hungry China in strategy shift | Reuters

Qatar is in talks to make Chinese firms partners in its liquefied natural gas expansion project, the world’s largest, in a shift from the Gulf state’s reliance on western majors for technology and global outreach, industry sources said.

Since the early 1990s, Qatar has depended on international companies, including ExxonMobil, Royal Dutch Shell and Total, to help it to build its LNG industry. In exchange, the Western majors received lucrative long-term supply contracts.

But the U.S. shale gas revolution and increased focus on renewable energy as pressure mounts to tackle climate change has curbed the West’s appetite for gas.

Three sources familiar with the matter told Reuters state energy giant Qatar Petroleum (QP) was in talks with Chinese state firms, including PetroChina and Sinopec, for equity stakes in Qatar’s $28.7 billion North Field expansion, the world’s biggest single LNG project.

Western majors ExxonMobil, Shell, ConocoPhillips, Total, Chevron and Eni have also been invited to bid for a share.

The sources spoke on condition of anonymity because the matter is private, although CNOOC Ltd’s CFO Xie Weizhi said last month the firm was “very interested” in Qatar’s gas projects.

It was unclear how advanced the talks were. One of the sources said PetroChina was discussing a 5% stake.