Qatargas, Petronas Sign UK LNG Supply Deal

Qatargas and Petronas signed a 5 year SPA-1

Qatargas and Petronas LNG (UK) signed a five-year Sales and Purchase Agreement (SPA) for an annual LNG volume of 1.14 million tones, effective January 2014.

The LNG will be supplied from Qatargas 4 (Train 7), a joint venture between Qatar Petroleum and Shell which started production in January 2011, and will be delivered onboard Q-Flex LNG Vessels to Petronas’ Dragon LNG Terminal located in Milford Haven, United Kingdom.

Mohammed Bin Saleh Al-Sada, Minister of Energy & Industry and Chairman of the Board of Directors of Qatargas signed the SPA on behalf of Qatargas 4 while the Executive Vice President, Gas & Power Business of Petronas, Datuk Anuar Ahmad signed on behalf of Petronas LNG (UK) Ltd.

Al-Sada welcomed the signing of the SPA as “another milestone in Qatar’s standing as a reliable international energy supplier.” Al-Sada said “This is a ground-breaking agreement between two well established and leading companies in the LNG sector, which further strengthens the existing relationship between Qatargas and Petronas.”

“Qatari LNG continues to play a key role in supporting efforts by countries around the world to diversify their energy supplies using gas as an environmentally friendly source of energy,” Dr. Al-Sada concluded.

Qatargas’ Chief Executive officer, Khalid Bin Khalifa Al Thani, also added, “I am delighted that Qatargas has succeeded in increasing its customer base and global LNG reach. We, in Qatar, are very proud to partner with Petronas and its subsidiary Petronas LNG (UK) for the UK market which continues to be one of the most important LNG markets in Europe. This SPA further demonstrates Qatargas’ commitment as a reliable LNG supplier to the world.”

LNG World News Staff, September 18, 2013