QP's affiliate Ocean LNG inks first SPA agreement
Recently formed affiliate of Qatar Petroleum, Ocean LNG Limited, has signed its first long-term LNG sale and purchase agreement(SPA) with Brazil-based CELSE-Centrais Elétricas de Sergipe S.A.
Qatar Petroleum’s (QP) recently established affiliate, Ocean LNG Limited, has signed its first SPA agreement.
Qatar Petroleum’s (QP) affiliate, Ocean LNG Limited, and Brazil-based CELSE-Centrais Elétricas de Sergipe S.A. (CELSE), a joint venture between GG Power and Ebrasil, have signed a long-term LNG sale and purchase agreement (SPA).
Qatar Petroleum (QP) president and CEO, Saad Sherida Al-Kaabi hosted the signing ceremony and, under the terms of the agreement, Ocean LNG will supply 1.3 million tonnes per annum of LNG to CELSE, on an Ex-Ship basis.
Beginning in 2020, the shipments will be for use at CELSE’s Porto de Sergipe power project near Aracaju, in the Brazilian state of Sergipe.
Al-Kaabi expressed his pleasure at the conclusion of the SPA agreement, highlighting it as the inaugural such contract to be entered into by Ocean LNG, “making it the first supplier to deliver LNG to Brazil under a long-term contract” he said.
The executive added: “It represents another step towards enhancing our position as a global LNG leader and extending our reach to all markets”.
Al-Kaabi pointed out the importance of Brazil to the LNG market and emphasised his company’s willingness to collaborate further: “We look forward to a long-term relationship with CELSE and its shareholders, and to work together to meet Brazil’s energy needs.”
CELSE CEO, Eduardo Malan echoed his words, stressing the importance of the milestone in the development of the Porto de Sergipe power plant.
He said: “CELSE is proud to partner with LNG industry pioneers Qatar Petroleum and ExxonMobil and their newly formed Ocean LNG joint venture as its long-term fuel supplier.”
QP established Ocean LNG Limited for the key purpose of marketing QP’s future international LNG supply portfolio sourced outside of the State of Qatar.
The new entity is a joint venture company owned by a QP affiliate (70%) and an ExxonMobil affiliate (30%), and has an established branch office in the Qatar Financial Centre (QFC).