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Sat 21 Sep 2013 11:03 AM

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Qatargas inks deal to supply LNG to UK firm

Annual delivery of over 1m tonnes agreed with UK unit of Malaysian oil and gas giant Petronas

Qatargas inks deal to supply LNG to UK firm
A LNG tanker prepares to deliver its latest cargo. (Photo for illustrative purposes only)

Qatar Liquefied Gas Company Limited, also known as Qatargas, has signed an agreement to sell liquefied natural gas (LNG) to the UK.

The five year sales and purchase deal with Petronas LNG (UK), the UK arm of the Malaysian oil and gas giant, is for an annual LNG volume of 1.14 million tonnes, effective January 2014, the company said in a statement.

The LNG will be supplied from Qatargas 4 (Train 7), a joint venture between Qatar Petroleum and Shell which started production in January 2011, and will be delivered on board Q-Flex LNG Vessels to Petronas' Dragon LNG Terminal located in Milford Haven.

Dr Mohammed Bin Saleh Al-Sada, Minister of Energy & Industry and chairman of Qatargas, hailed the agreement as "another milestone in Qatar's standing as a reliable international energy supplier".

He said: "This is a ground-breaking agreement between two well established and leading companies in the LNG sector, which further strengthens the existing relationship between Qatargas and Petronas."

"Qatari LNG continues to play a key role in supporting efforts by countries around the world to diversify their energy supplies using gas as an environmentally friendly source of energy," he added.

Qatargas' CEO, Khalid Bin Khalifa Al Thani, said: "We, in Qatar, are very proud to partner with Petronas... for the UK market which continues to be one of the most important LNG markets in Europe."

The two companies recently concluded a deal under which Qatargas delivered its first ever LNG cargo to Malaysia. The cargo was delivered in July to Malaysia's first LNG receiving terminal located in Melaka.

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