Qatargas in 2nd five-year LNG deal with Petronas
DOHA: Qatargas, the world’s largest liquefied natural gas (LNG) producer, signed a five-year sale and purchase agreement with Petronas LNG UK yesterday, expanding a strategic import deal to Europe in the face of a looming global glut of gas supplies.
Under the agreement Qatargas will deliver 1.1 million tonnes of LNG a year to the UK-based venture until Dec 31 2023, extending a current five-year contract that was due to expire on Dec 31, 2018.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell and will be delivered to Dragon LNG terminal at Milford Haven in the United Kingdom.
Qatargas is looking to Britain and the Netherlands in an effort to weather an impending global gas glut through expanding import deals into Europe’s most liquid markets, industry sources told Reuters in March. Qatar must lock in buyers for its unsold supply just as new Australian and US producers muscle into its prized Asian markets.
Petronas LNG UK is a subsidiary of Petroliam Nasional Bhd, Malaysia’s national oil and gas company. – Reuters