Qatar’s Ras Laffan Liquefied Natural Gas Co. (RasGas) signed on Sunday a long-term agremment with Italian energy group Edison Gas for the supply of 3.5 million tons a year of LNG, reported the Gulf Times newspaper.
The agreement covers a period of 25 years with delivery starting in 2005.
To execute the deal, RasGas will expand its LNG facility by adding a fourth train in the Ras Laffan Industrial City, said the paper, adding that the total capacity will thus become 16 million tons a year.
RasGas will also be responsible for commodity shipment to Italy. The LNG major will secure four ships to transport the LNG to a terminal in the town of Rovigo in North Adriatic, being set up by Edison.
The gas for the project will be sourced from Qatar’s giant North Field - the world’s largest non-associated gas field, which has recoverable reserves of more than 500 trillion cubic feet of gas.
Edison Gas is RasGas’ second consumer in Europe.
Last month, the company had signed an agreement with Spain’s Gas Natural for delivery of 12.6 million tons of LNG over the next 12 years.
Qatar aims to export some 30 million tons of LNG by 2007. Currently, the two LNG companies - Qatargas and RasGas - export around 12 million tons of gas a year.
So far, Qatar has confirmed deals to export 23.2 million tons of LNG a year to Japan, Korea, India, Spain and now Italy – Albawaba.com