Qatar Petroleum announced that it signed a sale and purchase agreement to directly supply China with 600,000 metric tons of Liquefied Petroleum Gas (LPG) per year for five years.
Namely, Qatar Petroleum and Oriental Energy signed the agreement, which will start from January 2019.
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According to Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum, this deal aims to improve Qatar Petroleum’s energy relationship with China, which is now the world’s largest growing LPG market.
The LPG industry continues to record sustainable growth in China, as LPG is used for domestic use and the growing petrochemical sector.
China is currently attempting to reduce air pollution, as the Asian country released a three-year action plan to reduce air pollution by 2020.
In this plan, an environmental friendly transport system, which will incorporate high fuel efficiency and low emissions, is key. To achieve this system, China will attempt to increase the use of railways and waterways and reduce that of road transport.
In fact, as of 1 October 2018, ships operating in China’s Yangtze River Delta domestic ECA can no longer use fuel with a sulphur content exceeding 0.5%, unless an approved exhaust gas cleaning system is installed.
