On the first day of the World Cup, China did a big thing in Qatar.
We may say this, even if the national football team really goes to Qatar, it will not be as meaningful as this. Of course, we know that the national football team will definitely not be able to go to Qatar
What big deal?
One of the largest orders in the world, bar none.
According to media reports,
On November 21, Qatar Energy Company and Sinopec signed a 27-year long-term LNG purchase and sale agreement. Qatar will Supply 4 million tons of LNG to China.
According to Reuters, this is the longest agreement in the history of LNG trading.
Qatar is happy. Khabib, Qatar's Minister of State for Energy Affairs and CEO of Qatar Energy Company, said that this is a milestone agreement.
This agreement marks the arrival of a long-term deal, which is crucial to both buyers and sellers.
China is also very happy. Ma Yongsheng, chairman of Sinopec, said that the signing of this agreement will not only help meet my country's market demand for natural gas, but also help further optimize my country's energy consumption structure.
This is normal cooperation between enterprises, but we can also look at this large order in the context of the international energy landscape.
First, why Qatar?
Because Qatar has Qi, a lot of Qi.
The Northern Gas Field located in the Persian Gulf is the largest natural gas field in the world. It is jointly owned by Qatar and Iran. Iran calls it the South Pars Gas Field. Almost all of Qatar's natural gas production, and about 60% of its exports, come from this field.
Qatar is already the world’s largest LNG exporter, and is also undergoing project expansion. By 2027, Qatar’s liquefied gas capacity is expected to increase from 77 million tons/year to 126 million tons/year. .
There are only a few target major customers, including Japan, the European Union, China, and India in the future.
Second, why China?
China is still developing, and development requires natural gas.
It must be noted that as high-emission energy sources such as coal are gradually phased out, natural gas will occupy an even more important position in the energy structure of various countries. To ensure energy security, China needs more pipeline natural gas, but it also needs more LNG.
China is already the largest LNG buyer in the world today. Last year, China imported a total of 81.4 million tons of LNG, of which nearly 9 million tons came from Qatar, accounting for 11% of my country’s total LNG imports.
In the first five months of this year, China’s LNG imports from Qatar increased from 11.7% in the same period last year to 24.9%. Qatar has also become the second largest LNG supplier to China after Australia.
Of course, Europe also needs it, especially this year.
Due to the conflict between Russia and Ukraine, Russia’s natural gas supply to Europe has been interrupted, but the United States sells natural gas to Europe at three or four times the price. An American LNG ship can earn 100 million US dollars in Europe, so much so that Macron They couldn't help but curse,
"This is not the true meaning of friendship."
Third, why did Qatar and China reach an agreement?
There are just a few reasons.
China-Qatar cooperation relationship is getting better and better. China’s football cannot beat Qatar, but in many fields, China has advantages that the world cannot match. For this World Cup in Qatar, many venues were built by Chinese companies, including the largest and most luxurious Lusail Stadium.
More importantly
China’s huge market opportunities and stable demand enable Chinese companies to provide long-term agreements that many Western giants cannot. Moreover, when doing business, Chinese companies do business honestly and do not point fingers.
So, we hit it off immediately.
Of course, taking into account balance, Qatar will give large orders to Chinese companies, as well as some contracts to Europe and Japan. This is the survival wisdom of a small country. In the Middle East, Qatar can be said to be the Singapore of Southeast Asia. It is very good at domestic and foreign affairs.
However, according to relevant reports from the Japanese government, long-term LNG contracts that can stabilize price supply until 2026 have been sold out.
Finally, what do you think?
Let’s keep it simple.
1. A big step for China, a small step for China.
It’s very simple. China not only cooperates with Qatar, but also with Saudi Arabia, the United Arab Emirates, Kuwait, and Iran in the future. I think there will be great cooperation. The market is there, the demand is there, cooperation is the only way to win.
The world is undergoing major changes unseen in a century. One of the changes we can see is that the United States is withdrawing from the Middle East, and the Middle East is welcoming China, or to be more precise, it is welcoming China, India, Japan and other Eastern countries. .
A meaningful example. In order to reduce inflation, Biden rushed to Saudi Arabia this year to pressure Saudi Arabia to increase production, but what was the result? Saudi Arabia takes the lead in cutting production. Of course, cutting production is not good for China, but this kind of public slap in the face highlights the sharp contradictions between the United States and Middle Eastern countries. Now, the United States threatens to retaliate against Saudi Arabia
We have learned the lessons of the United States. The more anxious the United States becomes, the more it will pressure Middle Eastern countries to stay away from China, and the more Middle Eastern countries will resent it. Of course, this also tests our gaming ability.
2. The bigger thing is not just energy itself.
What is that?
That’s energy + money.
We should see that an important factor why the United States dominates the world is the absolute dominance of the US dollar, and one of the foundations is the existence of petrodollars.
Oil around the world is priced in US dollars. Middle Eastern countries are disgusted by America's dictating; America's ruthless cutting of leeks is a headache for the whole world.
What to do?
We do not rule out using other currencies in the future. It can be euros, yen, or, of course, renminbi. Don't think this is all fantasy. China's huge market and stable demand are the greatest guarantee and attraction.
Of course, the United States will definitely use various means to obstruct and suppress it. But once a trend takes shape, it is not based on the will of certain people or countries. If you don’t believe it, ask your friends in the Middle East.
3. China, come on!
In this World Cup, according to some friends, except for the Chinese national football team, all the Chinese Pandas went.
Moreover, the performance is very good. Therefore, on the first day of the opening ceremony, there were World Cup matches on one side and world-class big orders on the other. This also allows the world to fully see China's huge market prospects, the strong competitiveness of Chinese enterprises, and China's most winning strategy for diplomatic cooperation.
Of course, all prerequisites are China’s stability and prosperity. The leader has said before,
Relying on tenacious struggle to open up new horizons for career development, the most fundamental thing is to do our own things well.
The true qualities of a hero are revealed only when the sea is changing.
China, come on. As for the national football team, well, let’s not mention it.