Qatargas, the world’s largest liquified natural gas (LNG) producer, signed a five-year sales and purchase agreement (SPA) with Petronas LNG,reported Reuters. Under the terms of the newly signed deal, which is an extension of the current five-year contract that is due to expire in 2018, Qatargas will deliver 1.1mt/y of LNG to the UK-based venture until the end of 2023, according to Qatar Gas News.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell which started production in January 2011. Furthermore, the gas will be carried on board Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven in the UK.
Qatargas’s Chairman, Saad Sherida Al-Kaabi, said: “ this agreement is a testament to our proven ability to safely and reliably deliver LNG to customers not only in the UK but all over the world.”
It is noted that Petronas UK is a subsidiary of Petronas, the national oil and gas company of Malaysia. While, Qatargas is looking to the UK and Netherlands in an effort to weather an impending global gas glut through expanding import deals into Europe’s most liquid markets.