On the first day of the opening day of the World Cup, China did a great thing in Qatar: yqqlm

On the first opening day of the World Cup, China did a big thing in Qatar.

We can say this, even if the national football team really went to Qatar, it would not be as significant as this matter. Of course, we know that the national football team will definitely not be able to go to Qatar…

What’s the big deal?

One of the largest orders in the world, none of them.

According to media reports, just on November 21, Qatar Energy Company and Sinopec signed a 27-year long-term purchase and sale agreement for liquefied natural gas (LNG) Qatar will supply China with 4 million tons of LNG at the year.

According to Reuters, this is the longest deal in the history of LNG trading.

Qatar is happy. Khaabi, Qatar’s Minister of State for Energy Affairs and CEO of Qatar Energy, said the deal was a landmark deal, marking the arrival of a long-term transaction that is crucial for both buyers and sellers.

The Chinese side is also very happy. Ma Yongsheng, chairman of Sinopec, said that signing this agreement will not only help meet the demand for natural gas in my country’s market, but also help further optimize my country’s energy consumption structure.

This is normal business cooperation, but we can also look at this large order in the context of the international energy landscape.

First, why Qatar?

Because Qatar has gas and there is a lot of gas.

The North Gas Field in the Persian Gulf is the world’s largest natural gas field, jointly owned by Qatar and Iran, which Iran calls the South Pars Gas Field. Almost all of Qatar’s natural gas production and about 60% of its exports come from the field.

Qatar is already the world’s largest exporter of LNG and is still in the process of project expansion. By 2027, Qatar’s liquefied gas capacity is expected to increase from 77 million tonnes annually to 126 million tonnes annually .

There are just a few major target customers, Japan, European Union, China and India in the future.

Second, why China?

China is still developing and natural gas is needed for development.

It should be noted that with the phasing out of high-emitting energy sources such as coal, natural gas will occupy a more important position in the energy structure of various countries. To ensure energy security, China needs more natural gas in pipelines, but also more LNG.

China is already the world’s largest LNG buyer. 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 China’s second largest LNG supplier after the ‘Australia.

Of course, Europe also has a great need for it, especially this year.

Due to the conflict between Russia and Ukraine, Russia’s supply of natural gas to Europe was cut off, but the United States sold natural gas to Europe at three to four times the price: an American LNG ship can earn 100 million dollars when it arrives in Europe. Europe, so much so that Macron could not help but reproach him: “This is not friendship”.

Thirdly, why did Qatar and China reach the agreement?

Just a few reasons.

The Sino-Qatar cooperation relationship is getting better and better. Chinese football cannot beat Qatar, but in many fields, China has advantages that the world cannot match. For the 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 deals that many Western giants cannot. In addition, Chinese companies talk business, do business honestly, and do not criticize in any way.

Then, hit it.

Of course, on balance, Qatar will give large orders to Chinese companies, and will also give 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 has a good set of domestic and foreign affairs.

However, long-term LNG contracts with stable-price supply before 2026 have all been exhausted, according to relevant reports from the Japanese government.

Finally, what do you think?

Or just three points.

1. A big step for China, but a small step for China.

Simply, China cooperates not only with Qatar, but also with Saudi Arabia, UAE, Kuwait and Iran in the future, I think there will be great cooperation. The market is there, the demand is there, and cooperation is a win-win situation.

The world has undergone major changes not seen in a century. One of the changes, we can see that the United States is withdrawing from the Middle East, and the Middle East is welcoming China, or more precisely, it is welcoming China, India , Japan and other eastern countries.

A telling example, in order to reduce inflation, Biden rushed to Saudi Arabia this year to pressure Saudi Arabia to increase production, but what happened? Saudi Arabia leads the way in cutting production. Sure, cutting production isn’t good for China, but this kind of public slapstick highlights the stark contradiction between the US and Middle Eastern countries. Now, the US is threatening retaliation against the Saudis…

We can see the lessons of the United States. The more anxious the United States is, the more it will pressure Middle Eastern countries to stay away from China, and the more disgusted Middle Eastern countries will be. Of course, this also tests our gaming skills.

2. Bigger things, not just energy itself.

What is that?

This is energy + currency.

We should see that a major factor in the US dominating the world is the absolute domination of the US dollar, and one of the foundations is the existence of petrodollars.

The price of oil worldwide is in dollars. Middle Eastern countries are disgusted by America’s finger pointing; America’s ruthless cutting of leeks is a headache for the whole world.

How to do?

It is not excluded that other currencies will be used for the denomination in the future. It can be Euro, Japanese Yen and, of course, Renminbi. Don’t think it’s all fantasy. China’s huge market and stable demand are the biggest guarantee and attraction.

Of course, the United States will certainly use various means to prevent and suppress it. But once something like a trend takes shape, it doesn’t depend on the will of certain people or countries. If you don’t believe me, ask your friends in the Middle East.

3. China, come on!

This World Cup, according to some friends, apart from the China national football team, the Chinese pandas are all gone.

Also, the performance is very good. Therefore, on the first day of the opening ceremony, there was a World Cup match on one side and a world-class grand order on the other. This also allows the world to fully see China’s huge market prospects, the strong competitiveness of Chinese companies, and China’s strategy of win-win diplomatic cooperation.

Of course, all prerequisites are China’s stability and prosperity. The leader said earlier that the key thing to opening up a new world of career development by relying on tenacious struggle is to do your own thing well.

The vicissitudes of life show the true qualities of a hero.

China, come on! As for the national football team, well, let’s not talk about it.