Qatar Petroleum wants to raise money through bonds
The state corporation Qatar Petroleum plans to float bonds in the amount of $ 12.5 billion. They will be issued in batches, the first of which is a 5-year paper worth 1.5 billion dollars. Then 10- and 20-year bonds worth $3.5 billion each will be placed. In addition, Qatar Petroleum is offering formosa bonds for 30 years and $4 billion. The latter are bonds that are issued in the Taiwan market, but they come in U.S. currency.
The 20-year bonds have a yield of about 3.15% and the 30-year bonds have a yield of 3.3%. The 10-year bonds are issued at a premium of 90 bps to the UST, and the papers that are valid for 5 years are at 50 bps.
Bonds of Qatar oil and gas corporation are very popular. Demand for them exceeded the amount of 40 billion dollars, with securities for 10 and 30 years being in the highest demand.
It should be noted that Qatar Petroleum has a leading position on the liquefied gas market and regularly expands its production volumes. At the beginning of the year the corporation’s management decided to start the development of the Severnoye field. As part of this project a plant will be built where in addition to LNG, ethane, sulfur, and liquefied carbon gas will also be produced. Thanks to the plant, the total capacity of Qatar will increase to 110 million tons of gas per year, now this figure is 77 million tons. Production at the facility will start at the end of 2025.
In March of this year it became known about the long-term agreement between Qatar Petroleum and Chinese company Sinopec. Now the Qatari producer will supply 2 million tons of liquefied gas to China per year. The contract is designed for 10 years, and is the first of its kind for the Chinese side. The countries have been cooperating in the energy sector for a long time; for Qatar, Beijing is the key strategic partner, for which Qatar Petroleum provides the full cycle of gas and oil supplies.
China’s increased purchase of LNG is conditioned by following the climate strategy. According to it, the PRC needs to reduce carbon emissions, and to do that, it needs to reduce the consumption of fossil energy resources. Qatar Petroleum is ideally suited as a reliable supplier. The company has been in the energy market since 1974 and is engaged in field exploration, development, extraction of raw materials, as well as transportation and storage. The corporation’s revenues exceed $30 billion a year.