(Yicai Global) June 21 -- The listed arm of China National Petroleum Corporation climbed today after China’s largest oil and gas supplier said it is purchasing a 1.25 percent stake in Qatar’s North Field East expansion project from QatarEnergy, the world’s biggest seller of liquefied natural gas. 

Petrochina’s share price [SHA:601857] closed up 2 percent at CNY7.52 (USD1). Earlier in the day it advanced 3.8 percent to hit CNY7.65. While its Hong Kong-traded stock [HKG:0857] finished the day up 1.3 percent at HKD5.49 (USD0.70).

QatarEnergy will transfer 5 percent interest to CNPC, the equivalent of one NFE train with a capacity of 8 million tons per annum, the Doha-based firm said yesterday. This gives CNPC a 1.25 percent stake in the overall NFE expansion project.

QatarEnergy will also supply Beijing-based CNPC with 4 million tonnes of LNG from the NFE project per year for the next 27 years, it said. The payment amounts involved in the equity transfer and LNG supply were not mentioned.

“Our collaboration over the NFE project represents a major achievement and excellent practice of both CNPC and Qatar Energy in delivering on the strategic consensus of the leaders of our countries,” said CNPC Chairman Dai Houliang. “We will continue to actively discuss with Qatar Energy all-round cooperation across the hydrocarbon industry chain and other areas like green and low carbon energies,” he added.

The North Field is the world’s largest single gas field and the expansion involves four LNG production lines each with an annual capacity of 8 million tonnes. It will increase Qatar’s LNG export capacity to 110 million tonnes per year and enhance its position as the world’s largest LNG exporter, CNPC said.

In April, Sinopec, another Chinese state-owned oil and gas company, bought a 1.25 percent stake in the NFE project. Other energy giants, including France’s Total Energies, the Netherlands’ Shell, the Italy’s Ente Nazionale ldrocarburi as well as the US’ Exxon Mobil Corp. and Conoco Phillips have acquired equity in the NFE project through joint ventures with QatarEnergy.

Editor: Kim Taylor