Commodities
Qatar set to strike second big LNG supply deal with China
Qatar is set to secure its second large gas supply deal with a Chinese state-controlled company in less than a year.
China National Petroleum Corporation (CNPC) and QatarEnergy are expected to sign a 27-year agreement later on Tuesday, under which China will purchase 4 million metric tons of LNG a year from the Gulf Arab state, two sources briefed on the matter told Reuters.
CNPC also will take an equity stake in the eastern expansion of Qatar’s North Field liquefied natural gas (LNG) project, the sources said. The stake is the equivalent of 5% of one LNG train with the capacity of 8 million tons per year, one of the sources said.
In an identical deal, QatarEnergy sealed a 27-year supply agreement with China’s Sinopec in November for 4 million tons a year. The state-owned Chinese gas giant also took an equity stake equivalent to 5% of one LNG train of 8 million tons a year capacity.
Asia, with an appetite for long-term sales and purchase agreements, has been ahead so far in securing gas from Qatar’s massive production expansion project.
Tuesday’s deal, first reported by the Financial Times, will be QatarEnergy’s third deal to supply LNG from the expansion to an Asian buyer.
Qatar is the world’s top LNG exporter and competition for LNG has ramped up since the start of the Ukraine war, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent’s imports.
Reuters had earlier reported that CNPC was close to finalising a deal to buy LNG from QatarEnergy over nearly 30 years from the North Field expansion project.
QatarEnergy had previously said that it could give up to 5% stakes in the gas trains linked to its North Field expansion to what Saad al-Kaabi, the Gulf state’s energy minister and CEO of QatarEnergy, described as “value-added partners”.
In April, China’s Sinopec became the first Asian energy company to become a “value-added” partner in the project.
QatarEnergy has also signed equity partnerships on the project to international oil companies, but has said it plans to retain a 75% stake in the North Field expansion, which will cost at least $30 billion including construction of liquefaction export facilities.
As Beijing’s ties with the United States and Australia, Qatar’s two biggest LNG export rivals, are strained, Chinese national energy firms increasingly see Qatar as a safer target for resource investment.
CNPC and QatarEnergy didn’t immediately respond to Reuters requests for comment.
Investing.com — Goldman Sachs has delayed its gold price target of $3,000 per ounce, pushing the forecast to mid-2026 instead of the previous expectation for December 2025.
The revision comes as Goldman’s economists now foresee fewer Federal Reserve rate cuts in 2025, with a smaller anticipated reduction of 75 basis points, compared to the 100 basis points expected previously.
The change is expected to slow the pace of ETF gold buying, leading to a delayed rise in gold prices.
In a research note on Monday, Goldman Sachs stated, “We now forecast that gold will rise about 14% to $3,000/toz by 2026Q2 (vs. Dec25 previously) and now expect it to reach $2,910/toz by end-2025.”
While central bank demand for gold remains a key driver of the bullish forecast, contributing a projected 12% increase by 2026Q2, weaker-than-expected ETF flows following the resolution of the U.S. elections have dampened price expectations, according to the investment bank.
Speculative demand, which surged ahead of the U.S. election, has since moderated, keeping prices range-bound.
Goldman Sachs maintains that structural factors, particularly “structurally higher central bank demand,” will provide support for gold prices, even as ETF demand grows at a slower pace.
Central bank purchases, particularly following the freeze of Russian assets, have surged, and Goldman expects this trend to continue, with monthly purchases averaging 38 tonnes through mid-2026, more than double the pre-freeze level.
Despite this positive outlook, the analysts cautioned that the risks to their forecast remain balanced.
They explained that a “higher for longer” federal funds rate represents the main downside risk, while a potential U.S. recession or “insurance cuts” could drive prices above the $3,000 mark.
Investing.com — European prices have seen a minor decrease in early trade but overall continue to remain high for the month. This is largely due to predictions of colder weather and concerns over supply following the cessation of Russian gas transit via Ukraine.
The benchmark Dutch TTF contract has experienced a 1.2% decrease, now hovering at 49 euros per megawatt hour. Last week, it had broken the 50 euros mark following the confirmation of halted Russian pipeline flows through Ukraine. This halt was due to the expiration of Gazprom (MCX:)’s transit deal.
Analysts at ING have noted that the European gas market is receiving additional support from the forecast of colder-than-usual weather for the next two weeks. This could potentially lead to a quicker-than-expected decrease in storage levels.
They further noted that while the current storage levels should be sufficient for Europe to get through this winter without issue, the refilling of storage during the injection season could prove to be a more substantial task than last year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Ahmad Ghaddar
LONDON (Reuters) – Oil prices steadied at their highest since mid-October as colder weather spurred buying while further support came from expectations of tighter sanctions on Iranian and Russian oil exports.
futures gained 22 cents, or 0.3%, to $76.73 a barrel by 1133 GMT, their highest since Oct. 14.
U.S. West Texas Intermediate crude was up 23 cents, or 0.3%, at $74.19 for its highest since Oct. 11.
Oil had previously chalked up five sessions of gains, buoyed by hopes of rising demand after colder weather in the Northern Hemisphere and more fiscal stimulus to revitalise China’s faltering economy.
Brent crude was supported by colder than normal weather in northwest Europe and the United States, a rally in prices and higher refining profit margins, said SEB analyst Bjarne Schieldrop.
Investors are also awaiting economic news for more clues on energy consumption and the U.S. Federal Reserve’s interest rate outlook. Minutes of the Fed’s last meeting are due on Wednesday and the December payrolls report is scheduled for Friday.
Meanwhile, Saudi Aramco (TADAWUL:), the world’s top oil exporter, has raised crude prices in February for buyers in Asia, the first increase in three months. A rise in these prices usually indicates firmer demand expectations.
On the supply front, stronger Western sanctions on Iranian and Russian oil shipments are a distinct possibility.
The Biden administration plans to impose more sanctions on Russia over its war on Ukraine, taking aim at its oil revenues with action against tankers carrying Russian crude, two sources with knowledge of the matter said on Sunday.
Goldman Sachs expects Iranian oil production and exports to fall by the second quarter as a result of expected policy changes and tighter sanctions from the administration of incoming U.S. President Donald Trump.
Output at the OPEC producer could drop by 300,000 barrels per day (bpd) to 3.25 million bpd by the second quarter, the bank said.
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