Qatar talks with Chinese firms for its LNG project

Qatar Petroleum (QP) is in talks to make Chinese firms partners in its North Field expansion, the world's biggest single LNG project. This is, in fact 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.

The North Field expansion should allow Qatar to strengthen its position as the largest LNG exporter, with output of 110 million tonnes per annum (mtpa) by 2026, a 40% increase.

Industry sources familiar with the matter told Reuters state energy giant Qatar Petroleum was in talks with Chinese state firms, including PetroChina and Sinopec, for equity stakes in Qatar's $28.7 billion North Field expansion.

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