Qatar, South Korea sign major gas deal
Qatar's Rasgas and South Korea's state-run Korea Gas Corp (Kogas) have agreed that Rasgas will sell Kogas an additional 2 million tons of liquefied natural gas (LNG) per year for the next 20 years.
Kogas is one of the world's biggest LNG buyers and has a standing agreement with Rasgas for 7 million tons a year until 2024. This will now be increased to 9 million tons, over one-quarter of South Koreas LNG requirements. Kogas chief operating officer Young Sung Park said of the deal, "This agreement is further evidence of these strong ties and helpful for long term security of LNG supply to Korea."
Dr. Mohamed Saleh al-Sada, Qatar's Minister of Energy and Industry, added that South Korea and Qatar "have enjoyed exceptional, long standing bilateral relations. Excellent cooperation was established in all fields...We attach great importance to reinforcing these relationships and look forward to developing further the cooperation and collaboration between our governments in all fields."
Rasgas is one of two LNG exporters in Qatar. It was established in 2001 by Qatar Petroleum in partnership with ExxonMobil and has a capacity of 37 million tons of LNG annually.
This deal comes after Rasgas also extended a long-term deal with France's EDF to deliver 3.4 million tons of LNG per year to northwest Europe in October 2011.
These partnerships represent a great gain for Qatar's LNG business. Qatar is the world's leading LNG exporter with an annual production capacity of 77 million tons. It struggled to find buyers until the tsunami ruined Japan's Fukushima nuclear power plant last March, which increased gas demand, driving up exports to Asia. Rasgas's sister company Qatargas is planning to double long term LNG sales to Asia from 11 million tons to over 20 million tons. (Source: english.nuqudy.com)