Qatar Petroleum (QP) has signed a sale and purchase agreement to directly supply China with 600,000 metric tonnes of liquefied petroleum gas (LPG) per year for a period of five years.

The long-term agreement was signed by QP on 16 October with Sale of Petroleum Products Company (QPSPP) and Singapore-based Oriental Energy. The contract takes effect from January 2019.

Oriental Energy of Singapore is a subsidiary of Chinese company Oriental Energy, responsible for the procurement, trading and logistics of its parent company.

Oriental Energy, China’s largest LPG player, has the largest LPG distribution network and LPG storage facilities in China. In addition, it has five major LPG importing terminals along with several petrochemical facilities.

On 10 September, Qatargas Operating Company signed a contract with state-owned PetroChina to deliver around 3.4 million tonnes of liquefied natural gas (LNG) to China annually.