Qatargas and PETRONAS ink new 5 year LNG Sale and Purchase Agreement

By Vessels

Qatargas, the World’s Premier Liquefied Natural Gas Company, yesterday announced the signing of a new five-year liquefied natural gas (LNG) Sale and Purchase Agreement (SPA) with PETRONAS LNG UK Limited (PLUK).

Under the terms of the new SPA, Qatargas will deliver LNG to PLUK until 31 December 2023, an extension of its current contract due to expire on 31 December 2018.

Qatargas and PETRONAS ink new 5 year LNG Sale and Purchase Agreement

Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, said: “I am delighted to announce that by this agreement, Qatargas has extended its strong relationship with PETRONAS for many years into the future. This extension will enhance Qatar’s leading position in the LNG market, and will further reinforce Qatargas’ commitment to meeting the needs of its customers of this clean energy source."

Mr Al-Kaabi added: “Most importantly, this agreement is a testament to our proven ability to safely and reliably deliver LNG to customers not only in the United Kingdom but all over the world.”

Commenting on the new deal, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, said: “Qatargas continues to win new business, and I am very pleased to extend our relationship with PETRONAS. At Qatargas, we are focused on building strong, long-term relationships with our customers, and reinforcing our reputation for being the most reliable and flexible supplier of LNG in the marketplace.”

Ahmad Adly Alias, PETRONAS Vice President of LNG Marketing and Trading, said that the extension of the agreement proves the value of a long-term LNG business relationship for both PETRONAS and Qatargas: “As a buyer and seller of LNG, PETRONAS looks forward to enhancing a mutually-beneficial partnership with Qatargas for value added opportunities amidst the current business environment.”

A total of 1.1 million tonnes per annum (MTPA) is secured for a partnership that will now extend to a decade-long supply of LNG to the UK-based entity.

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 on board Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven, United Kingdom.

PLUK is the Atlantic basin-focused LNG trading subsidiary of PETRONAS, the national oil and gas company of Malaysia. PLUK is also responsible for securing LNG supplies into Dragon LNG terminal where PETRONAS owns 50% equity and capacity stake.

Source: Qatargas