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Tue 4 May 2010 12:05 PM

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Greece, Qatar mull joint energy projects

Two countries sign a non-binding MoU to build LNG terminals, export Qatari LNG to Greece.

Greece, Qatar mull joint energy projects
LNG EXPORTER: qatar is the worlds biggest exporter of LNG and its economy relies heavily on gas sales.(Getty Images)

Qatar said on Monday it was interested in investing 5 billion euros ($6.66 billion) to develop energy projects in debt-laden Greece.

The two countries signed a non-binding memorandum of understanding to export Qatari liquefied natural gas (LNG) to Greece and build LNG terminals in the Mediterranean country.

"I express the desire of Qatar for investments of 5 billion euros in Greece," the Gulf Emirate's Prime Minister Sheikh Hamad bin Jassim al-Thani said after meeting his Greek counterpart George Papandreou in Athens.

"This is a most welcome proposal for Greece at this time of economic hardship," said Papandreou, whose country agreed a 110 billion euro bailout by the EU and the IMF on Sunday to avoid default.

Greece, the euro zone's least competitive economy, is starving for foreign investment to help balance its payments deficit. Qatar is the world's biggest exporter of LNG and its economy relies heavily on gas sales.

The agreement includes plans for a 3.5 billion euro LNG terminal with a capacity of 7 billion cubic metres in western Greece, to be built by Qatar Petroleum, the Emirate's state oil company.

The two countries will set up a joint committee to look further into the projects. "It will take follow-up and determination on both sides for decisions to be taken and implemented," al-Thani said. ($1=.7508 Euro) (Reuters)

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