Qatargas, Petronas sign new multiyear LNG purchase agreement

Qatargas, Petronas sign new multiyear LNG purchase agreement
Qatargas, Petronas sign new multiyear LNG purchase agreement
Qatargas recently signed a five-year agreement with Petronas LNG UK Limited (PLUK), a liquefied natural gas (LNG) Sale and Purchase Agreement (SPA) that aims to build a long-term business partnership for both Petronas and Qatargas.

The SPA is an extension of the current contract, which was set to expire Dec. 31, 2018. The new agreement allows Qatargas to deliver LNG to PLUK through Dec. 31, 2023.

“I am delighted to announce that by this agreement, Qatargas has extended its strong relationship with Petronas for many years into the future,” Saad Al-Kaabi, chairman of the Qatargas board of directors, said. “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. 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.”

Ahmad Alias, Petronas vice president of LNG Marketing and Trading, noted the extension of the agreement speaks to the importance of a long-term LNG business partnership 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,” Alias said.
The contract provides a decade-long supply of LNG to the U.K.-based business for a total of 1.1 million tons per annum (MTPA).

The LNG will come from Qatargas 4 (train 7), which originated production in January 2011 in a collaboration between Qatar Petroleum and Shell. The gas will be delivered to Dragon LNG terminal at Milford Haven, U.K., by Q-Flex LNG vessels.

PLUK, an LNG trading subsidiary of Petronas, focuses on the Atlantic basin. Petronas is the national oil and gas company of Malaysia and owns 50 percent equity and capacity stake in Dragon LNG terminal, where PLUK is responsible for securing LNG supplies.

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