Qatar signs gas contract with Spanish company
Qatari Minister of Energy and Industry and Chairman of the Board of the QatarGas Company, Abdullah Al-Attiya, recently signed two contracts with the Director General of the Spanish Natural Gas Companies Group, Jose Lopez.
In accordance with the contracts, the Qatari company will ship 12.6 million tons of the natural gas to the Spanish group during the years 2001-2012. According to the London-based Al-Hayat daily, 5.6 million tons of the Qatari gas will be supplied to Spain during the years 2001-2009 under one contract, while the second contract calls for the supply of 3.5 million tons of gas between the years 2002-2007. The Spanish group has an option of receiving an additional gas shipment of 3.5 million tons during the years 2007-2012.
Qatar is also currently seeking a 25-year long contract to export natural gas to Bahrain. An offshore pipeline will be constructed between the two neighboring countries to facilitate the transfer. A separate pipeline will be built so that Qatari gas can be supplied to Kuwait as well. The cost of the pipelines is estimated at $2.5 billion each.
Intensive negotiations have been conducted with Bahrain and Kuwait to finalize their respective contracts. The total length of the new pipeline to both Kuwait and Bahrain ranges from approximately 650 to 750 kilometers. The capacity of the pipeline is planned to be nearly 2 billion cubic feet. —(MENA Report)
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