Regional LNG: Qatargas, Petronas ink new 5-year LNG supply agreement
Thursday, October 20 2016 - 12:59 AM WIB
Qatargas announced Wednesday the signing of a new five-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Petronas LNG UK Limited (PLUK).
Qatargas said in a statement that under the terms of the new SPA, Qatargas will deliver LNG to PLUK until December 31, 2023, an extension of its current contract due to expire on December 31, 2018.
?This (SPA) 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," said Saad Sherida Al-Kaabi, Chariman of Qatargas in the statement.
A total of 1.1 million tons 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 percent equity and capacity stake.
Editing by Reiner Simanjuntak