Qatar­gas in 2nd five-year LNG deal with Petronas

The Sun (Malaysia) - - SPEAK UP -

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

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.