Ocean LNG signs sale and purchase agreement with Brazilian firm CELSE
Qatar Petroleum affiliate Ocean LNG has signed a long-term LNG sale and purchase agreement with Brazil-based company CELSE-Centrais Elétricas de Sergipe.
Qatar Petroleum established Ocean LNG to improve its LNG supply portfolio sourced outside of the country.
According to the agreement, Ocean LNG will supply 1.3 million tonnes of LNG per annum to CELSE, a joint venture between GG Power and Ebrasil on an ex-ship basis.
The shipments are scheduled to begin in 2020, which will be utilised at CELSE’s Porto de Sergipe power project near Aracaju.
The power project is located in Sergipe, Brazil.
Qatar Petroleum President and CEO Saad Sherida Al-Kaabi said: “This is the first SPA to be entered into by Ocean LNG, making it the first supplier to deliver LNG to Brazil under a long-term contract. It represents another step towards enhancing our position as a global LNG leader and extending our reach to all markets.
“Brazil is an important LNG market and we are proud to contribute to meeting Brazil’s gas demand. We look forward to a long-term relationship with CELSE and its shareholders, and to work together to meet Brazil’s energy needs.”
CELSE CEO Eduardo Malan said: “This is an important milestone in the development of the Porto de Sergipe power plant.
"CELSE is proud to partner with LNG industry pioneers Qatar Petroleum and ExxonMobil and their newly formed Ocean LNG joint venture as its long-term fuel supplier.”
Qatar Petroleum affliate owns 70% interest in Ocean LNG. The remaining 30% of this joint-venture company is held by ExxonMobil affiliate.