Qatargas has signed a new five-year liquefied natural gas sale and purchase agreement (SPA) with Petronas LNG UK under which the world’s premier LNG company will deliver liquefied natural gas to the latter until December 2023, an extension of its current contract, which is due to expire in December 2018.
A total of 1.1mn tonnes per year (MTPY) 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.
Petronas LNG UK (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.
Qatargas chairman Saad Sherida al-Kaabi 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."
Saad Sherida al-Kaabi: Strong relationship
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.”
On the new deal, Qatargas chief executive officer Sheikh Khalid bin Khalifa al-Thani 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 (LNG Marketing and Trading) said that the extension of the agreement proved 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.”
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
QIIB to finance subscriptions to Baladna IPO
Doha Bank posts 11% jump in 9-month net profit to QR819mn
Gulfstream unveils G700 in race for world’s biggest private jet
Boeing ousts airliner chief as 737 MAX crisis worsens
Qatar Chamber explores co-operation ties with Serbia, Kenya delegations
Future of automotive industry and its impact on oil and gas producing countries discussed
French industry morale drops to 4 1/2-year low as trade tensions bite
Europe stock markets mixed; pound firms
A $50bn bond trade embraced by Goldman hinges on ETF gains