Qatargas, Petronas pen five-year LNG supply deal

Qatargas, Petronas pen five-year LNG supply deal
Image courtesy of Qatargas

Qatargas on Wednesday said it has signed a five-year LNG sale and purchase agreement with Petronas’ UK-based liquefied natural gas trading arm.

Under the terms of the new contract, Qatargas will deliver the chilled gas to Petronas LNG UK until 31 December 2023, an extension of its current contract due to expire on 31 December 2018, according to the company’s statement.

A total of 1.1 million tons per year has been secured through the contract that has been extended.

The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell which started production in January 2011 and will be delivered on board Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven, United Kingdom.

Malaysian giant Petronas owns 50 percent equity and capacity stake.

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