China Petrochemical Corporation, better known as Sinopec Group, is the world’s largest oil refining, gas and petrochemical conglomerate. Its a Chinese state-owned firm and as such is administered by the Chinese Communist Party’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

On Saturday Sinopec and QatarEnergy (the world’s top LNG supplier) signed a new 27-year liquefied natural gas (LNG) supply and purchase agreement.

News wires had the report, highlighting that:

• the two companies will cooperate on the second phase of the North Field (part of the world’s largest gas field which Qatar shares with Iran) expansion project, which will supply 3 million metric tons of LNG per year to Sinopec
• QatarEnergy will transfer a 5% interest to Sinopec in a joint venture company
• this is the third long-term supply deal between Sinopec and Qatar Energy

China is deepening its ties into Middle East energy.

This article was written by Eamonn Sheridan at www.forexlive.com.