According to Reuters, which cited unnamed sources, Chinese state-owned energy corporations are negotiating investments in the expansion of Qatar’s North Field and are ready to sign long-term supply contracts.

Qatar’s part of the world’s largest offshore gas reserve, which it shares with Iran, is known as the North Field. South Pars is the name given to Iran’s share. According to analysts, Qatar was the world’s top LNG exporter until recently, but it has been briefly dethroned by Australia in recent years, and it is anticipated to be eclipsed by the United States this year as further liquefaction capacity comes online.

Due to a lack of supply and the European Union’s desire to move away from Russian pipeline gas, LNG has recently become a key priority for large energy customers. The supply situation is so tight that U.S. producers had to shift cargo initially earmarked for Asian consumers to supply LNG amounts to Europe.

According to Reuters, if the Chinese state enterprises complete their negotiations with Qatar, it will be the first gas collaboration between the two countries. To date, the largest foreign investors in Qatari gas have been international energy corporations.

The contract would be part of Qatar’s goal to expand its gas presence in Asia, while it would give China much-needed diversification away from its current major supplier, Australia.

The North Field East development is expected to cost $30 billion, and Reuters reported earlier this month that the Qataris had chosen four partners for the project, including Shell, TotalEnergies, Exxon, and ConocoPhillips, citing unnamed sources.

The project, which is expected to be finished in 2027, will increase Qatar’s LNG export capacity by up to 64%, bolstering the country’s position in the international gas market. Currently, all four businesses are participating in LNG production in Qatar.