Qatar Liquefied Gas Co. Ltd (Qatargas) and Gas Natural Sdg, S.A. (Gas Natural) of Spain announced the two companies have signed LNG sales agreements for 2 billion cubic meters (bcm) or 1.5 million metric tons per annum (mmta) of LNG for 20 years, beginning 2005. The two parties have also
agreed to extend their existing mid-term ex-ship and fob contracts, singed in 2001, QNA reported.
Abdullah bin Hamad al Attiyah, Qatar's second deputy premier and minister of energy and industry, signed the agreements in his capacity as chairman of Qatargas and Enrique Locutura, chief executive officer of Gas Natural signed the agreements on behalf of the Spanish side. The gas for this project will be sourced from Qatar's giant
north field, which has recoverable reserves estimated at 900 trillion cubic feet of gas. The LNG will be transported for delivery to Spanish LNG terminals by two new LNG vessels, the Dukhan to be provided by Qatargas and Castillo de Villalba chartered by Gas Natural.
The agreement is the culmination of a long-term relationship between Qatargas and gas natural, which has been extensive since Qatargas s initial start-up in 1997.
By the end of 2003, Qatargas has sold over 90 fob or ex-ship cargoes or four million metric tons to Gas Natural which is the leader in the Spanish market, the most dynamic LNG market in Europe with over 20 percent growth in 2003.
Qatar will be producing 23 million tons a year of LNG in the year 2007 and output will rise to 77 million tons a year in the year 2011, said Abdullah bin Hamad al Attiyah. (menareport.com)
© 2004 Mena Report (www.menareport.com)
