Regional: Qatargas, PETRONAS LNG sign 5-year SPA

By Nellawati

Qatar Liquefied Gas Company Limited (Qatargas 4) and PETRONAS LNG (UK) Ltd. (PLUK) signed a five-year sales and purchase agreement (SPA) for an annual LNG volume of 1.14 million tones, effective January 2014.

Qatargas, the world?s largest LNG exporter, said in a statement obtained Thursday that 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 PETRONAS? Dragon LNG Terminal located in Milford Haven, United Kingdom.

Britain's falling domestic gas production has made it heavily reliant on imports of LNG, especially from Qatar, over the last few years, with rising competition for supplies raising fears over UK winter gas supplies.

Qatargas? Chief Executive officer, Khalid Bin Khalifa Al Thani said, ?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.?

The two companies recently concluded a Master Sales and Purchase Agreement (MSPA) under which Qatargas delivered its first ever LNG cargo to Malaysia. The cargo was delivered in July 2013 to Malaysia?s first LNG receiving terminal located in Melaka.

Editing by Reiner Simanjuntak