Qatargas signs new LNG sale and purchase agreement with Petronas LNG UK

Qatargas has signed a new five-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Petronas LNG UK (PLUK).

According to the new agreement, Qatargas will deliver LNG to PLUK until 31 December 2023, an extension of its current contract, which is due to expire on 31 December 2018.

Qatargas board of directors 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.

“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.”

Qatargas chief executive officer 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.”

"I am delighted to announce that by this agreement, Qatargas has extended its strong relationship with Petronas for many years into the future."

Petronas LNG marketing and trading vice president Ahmad Adly Alias said: “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.”

A total of 1.1 million tonnes per annum (MTPA) is secured for a partnership, which will be extended to a decade-long supply of LNG to the UK-based entity.

The LNG will be delivered from Qatargas 4 (Train 7) on board Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven, United Kingdom.

Qatargas 4 is a joint venture between Qatar Petroleum and Shell that started production in January 2011.

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Image: Qatargas and Petronas sign a new LNG SPA. Photo: Courtesy of Qatargas.