Qatargas: UK LNG Deal No Guarantee of Supply
Qatargas said that it is not obliged to send any liquefied natural gas to Petronas’ Dragon LNG terminal under a five-year deal it has signed last week.
“Qatargas has the flexibility rights to divert all these cargoes elsewhere. We are neither able to divulge how much of the contracted volume will be delivering into the UK or not, nor as to when such deliveries will be made,” Reuters cited a spokeswoman for the world’s largest LNG supplier as saying.
“Subject to certain conditions related to timing and payment of a diversion fee, Qatargas has flexibility rights to divert all these cargoes elsewhere,” she added.
Lasr week, Qatargas and Petronas LNG (UK) signed a sales and purchase agreement 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.
LNG World News Staff, September 23, 2013; Image: Dragon LNG