Qatar Petroleum (QP) has signed a Sale and Purchase Agreement (SPA) for the sale of its share of methanol, in the Qatar Fuel Additives Company (Qafac)to Mitsui and Co. of Japan for close to $160 million. The price is based on last year’s rate of methanol prices, and on the annual sales estimates, providing QP with a stable revenue and maintaining the interest of Qafac’s customers.
The agreement is a giant step by QP in marketing the country’s petrochemicals, which contributes to achieving a long-term stability in the sales of its share of Methanol. Mitsui will handle QP’s methanol share for a four and a half year period. The company’s annual quota of methanol to be sold under the SPA, ranges between 300,000-325,000 tons.
Qafac is a jointly owned venture, 50 percent of which is held by QP. Qafac’s other shareholders are the Chinese Petroleum Corporation, holding a 20 percent stake in the firm, the Lee Chang Yung Chemical Industry Corporation and the International Octane Limited who both hold 15 percent shares. Its plant, located at Mesaieed has the capacity to produce 825,000 tons of methanol and 610,000 tons of MTBE annually. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
