Qatar: Qatargas and Centrica pen new LNG deal
Qatargas has signed a new sale and purchase agreement (SPA) with Centrica; the latter will receive two million tonnes of liquefied natural gas (LNG) per annum as part of the deal
Qatargas has announced a new sale and purchase agreement (SPA) with Centrica, the largest supplier of gas to households in the United Kingdom.
As part of the agreement, Qatargas will deliver up to two million tonnes of liquefied natural gas (LNG) to Centrica per annum up to 2023.
Saad Sherida Al Kaabi, president and CEO of Qatar Petroleum (QP) and chairman of the board of directors at Qatargas, voiced his pleasure at the signing of the SPA, and underlined the strong relationship between both parties.
“This agreement underscores Qatargas’s reputation as a safe and reliable supplier of LNG,” he said. “Furthermore, this agreement has the potential to positively contribute to the United Kingdom’s energy security for years to come.”
Khalid Bin Khalifa Al Thani, CEO of Qatargas, added: “Qatargas is pleased to lengthen [its] existing partnership with Centrica – a partnership [that] dates back to 2011.”
Al Thani also pointed out that the new agreement will reinforce Qatargas’s commitment to “building a strong relationship with customers, and [its] position as the leading supplier of LNG to the United Kingdom”.
Iain Conn, chief executive of Centrica, said that the signing was an indication of growth for Centrica in its LNG portfolio, while “further developing its presence in the global LNG market”.
“I am very pleased that our long-standing supply relationship with the world’s biggest LNG producer will continue,” he added.
The latest SPA follows an initial three-year contract for the supply of LNG, which was signed by Qatargas and Centrica in 2011. The companies then entered into a further four-and-a-half-year contract, and the latest deal extends the agreement until December 2023.
The LNG supply will come from Qatargas 4, which boasts a production capacity of 7.8 million tonnes per annum.
This entity is a joint venture between Qatar Petroleum, which is a 70% shareholder, and Shell, which holds the remaining 30%.
The UK’s Isle of Grain Terminal will take delivery of the LNG, which will be transported by Qatargas-chartered Q-Flex and Q-Max LNG vessels.
Centrica supplies approximately 28 million customer accounts, mainly in the UK, Ireland, and North America.