Qatargas has announced a new Sale and Purchase Agreement (SPA) with UK’s gas supplier Centrica. In accordance with the SPA, Qatargas will deliver up to 2 million tonnes of Liquefied Natural Gas (LNG) per annum to Centrica until 2023.
Saad Sherida Al-Kaabi, Qatar Petroleum President and Chief Executive Officer, and Chairman of Qatargas Board of Directors, said:
“We are delighted to extend our strong relationship with Centrica and the United Kingdom. This agreement underscores Qatargas’ reputation as a safe and reliable supplier of LNG. Furthermore, this agreement has the potential to positively contribute to the United Kingdom’s energy security for years to come.”
Commenting on the newly signed deal, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, said:
“Qatargas is pleased to lengthen our existing partnership with Centrica – a partnership which dates back to 2011. This new agreement reinforces Qatargas’ commitment to building a strong relationship with customers, and our position as the leading supplier of LNG to the United Kingdom.”
Centrica Chief Executive, Iain Conn, said:
“Centrica continues to grow its LNG portfolio, 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.”
Qatargas initially entered into a three-year contract with Centrica to supply LNG from June 2011. The Company then entered into a further four-and-a-half-year contract, with the latest five-year contract extending the agreement until December 2023.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum (70%) and Shell (30%), with a production capacity of 7.8 million tonnes-per-annum. Qatargas-chartered Q-Flex and Q-Max LNG vessels will deliver the LNG to the Isle of Grain Terminal, in the United Kingdom.
Centrica is a leading international energy and services company, supplying approximately 28 million customer accounts mainly in the United Kingdom, Ireland and North America.
Source & Image credit: Qatargas
