Take-or-Pay agreement for the supply of natural gas over either 16 years or up until the contracted quantity has been utilized (with an option to extend for an additional year) was signed by the Tamar Partners with Dorad Energy to supply up to a total approximate quantity of 11.2BCM (with an option to increase to up to 13.2BCM) for estimated cumulative revenues of US $ 3.5 billion.
In the agreement the gas price will be linked to electricity production rates as determined time to time by the Public Utility and Electricity Authority and includes a ”floor rate”.
Supply of gas is expected once the Tamar reservoir begins to produce gas. The agreement is subject to a number of closing conditions.
[mappress] LNG World News Staff, October 15, 2012