Qatargas, Centrica ink new LNG supply deal

Qatargas, the world’s largest LNG producer on Monday said it has signed a deal to supply the chilled fuel to UK’s Centrica.

Under the new five-year deal, Qatargas will supply up to 2 million tonnes of liquefied natural gas per annum to Centrica until 2023, the company said in its statement.

The new LNG contract will start in January 2019, following expiry of Centrica’s existing contract with Qatargas at the end of December 2018.

Qatargas initially entered into a three-year contract with Centrica to supply LNG from June 2011. The company then entered into a further four-and-a-half-year contract, with the latest contract extending the agreement until December 2023.

“With the decline in North Sea production and the recent growth in global LNG supply, the UK is increasingly becoming an attractive destination for LNG,” Centrica said in a separate statement.

The chilled fuel will be supplied from Qatargas 4, a joint venture between Qatar Petroleum (70%) and Shell (30%), with a production capacity of 7.8 mtpa.

Qatargas-chartered Q-Flex and Q-Max LNG vessels will deliver the LNG to UK’s Isle of Grain terminal

LNG World News Staff