China Petroleum & Chemical Corp, also known as Sinopec, signed a 27-year liquefied natural gas supply and purchase agreement with QatarEnergy on Saturday, under which the two parties will cooperate on the second phase of the North Field gas project, which will supply 3 million metric tons of LNG per year to Sinopec.

Under the agreement, which was signed at the sixth China International Import Expo in Shanghai, Sinopec would take a 5 percent stake in the joint venture.

It is the third long-term supply deal between Sinopec and QatarEnergy, after the two parties signed a 10-year LNG purchase and sales agreement in 2021, followed by a 27-year deal last year.

Ma Yongsheng, chairman of Sinopec, said the cooperation will help further optimize China's energy consumption structure, build a new energy system and facilitate its carbon peak and carbon neutrality goals.

It is expected that both sides, based on the existing sound cooperation, will continue exploring comprehensive collaboration to achieve a higher level of mutually beneficial development, he said.