Union Fenosa signs supply agreement with OLNG
Spain’s Union Fenosa Gas has signed a contract for the short-term supply of liquefied natural gas (LNG) with Oman LNG. The contract is included in the framework agreement that was subscribed by the Spanish company and the Sultanate of Oman in May.
The contract envisages Oman LNG supplying approximately 1.8 billion cubic meters (bcm) of LNG over the course of two years.The "ex-ship" concept has been applied to the agreement signed by the two companies, meaning that the transfer of the LNG by boat to a specified reception point in Spain is included therein.
With this agreement, Union Fenosa Gas has covered its requirements as regards supply for the period spanning the end of the provision of gas from Algeria and the point at which it will begin to receive LNG under the long-term agreement signed with the Government of of Oman in May, for 2.2 billion bcm on a yearly basis as of 2006.
The company is thus continuing to pursue its strategy of consolidation as a comprehensive gas operator. Thanks to natural gas acquired at competitive prices, the company is ensuring its commercial development in Spain, with the dual aim of continuing its growth in the industrial and commercial-and-domestic sectors, and of providing supplies for its combined-cycle power stations.
The company has also made arrangements for another long-term supply in Egypt, specifically with the Egyptian General Petroleum Corporation (EGPC), for four bcm on an annual basis. This supply is expected to begin at the end of 2004. — (menareport.com)
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