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Tribune News Network
DOHA
Qatar Petroleum has signed a five-year sale and purchase agreement (SPA) to directly supply 600,000 metric tonnes (MT) of liquefied petroleum gas (LPG) per year to China, the company announced in a statement on Tuesday.
The long-term agreement was signed by Qatar Petroleum for Sale of Petroleum Products Company (QPSPP) and Oriental Energy (Singapore), with the contract starting in January 2019, QP said.
Qatar Petroleum President and CEO Saad Sherida al Kaabi said,"This agreement reflects our marketing strategy for promoting direct engagement with end-users, especially in China.
"We hope this deal will further enhance our energy relationship with China, as we place greater importance to meeting the needs of the world's largest growing LPG market."
Yan Jia Sheng, vice-president of Oriental Energy Group and managing director of Oriental Energy (Singapore) International Trading, said,"Through this first step, we hope to build a strong and sustainable relationship with Qatar Petroleum and to continue exploring other areas in which Qatar Petroleum and Oriental Energy can further collaborate on."
Oriental Energy (Singapore) is a subsidiary of Oriental Energy, responsible for the procurement, trading and logistics of Oriental Energy.
Oriental Energy, China's largest LPG player, has the largest LPG distribution network and LPG storage facilities in China.
The LPG industry continues to enjoy sustainable growth in China where LPG is used for domestic use and the growing petrochemical sector.
