Qatargas and Petronas signs LNG supply agreement

Qatargas has announced that it has signed a new five-year liquefied natural gas (LNG) sale and purchase agreement with Petronas LNG UK.

Under the new agreement, Qatargas will deliver 1.1m tonnes LNG per annum to Petronas until 31 December 2023, an extension of its current contract due to expire on 31 December 2018.

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 Dragon LNG terminal at Milford Haven, United Kingdom.

“This extension will enhance Qatar’s leading position in the LNG market, and will further reinforce Qatargas’ commitment to meeting the needs of its customers of this clean energy source,” said Saad Sherida Al-Kaabi, chairman of Qatargas.

“Most importantly, this agreement is a testament to our proven ability to safely and reliably deliver LNG to customers not only in the United Kingdom but all over the world,” Al-Kaabi added.