Qatargas inks LNG supply deal with UK’s Centrica
Qatargas said it signed an agreement to supply liquefied natural gas (LNG) to Centrica, the largest UK supplier of gas to customers.
Under the deal, Qatargas will deliver up to 2.4 million metric tons/year of LNG from the Qatargas 4 project to the UK Isle of Grain terminal for the next three years.
“The state of Qatar is keen to support the UK’s energy requirements and this agreement is yet another important milestone in our mutual energy relationship,” said Dr. Mohammed Bin Saleh Al Sada, minister of energy and industry and chairman of the Qatargas board of directors.
The signing was conducted by Qatargas CEO Khalid Bin Khalifa Al Thani and Centrica CEO Sam Laidlaw.
The UK is the world’s third-largest consumer of gas and one of the fastest growing markets for gas imports. In 2010, Qatar supplied the UK with 15% of its total gas demand, and by 2025, LNG will supply around 50% of UK gas needs, the companies said.
The current deal is likely to supply around 3% of the UK gas needs, and around 10% of UK residential gas demand.
“This significant deal heralds the start of a new working relationship between Qatargas and Centrica,” said Qatargas CEO Khalid Bin Khalifa Al Thani. “It further underscores Qatargas commitment to the UK as one of our key gas markets. I am particularly happy that this signing coincides with the arrival of the first Q-Max LNG vessel, Bu Samra, at the Isle of Grain terminal on Wednesday.”
Andy Brown, Shell’s executive vice president and director of Qatargas 4, said: “We would like to congratulate Qatargas on this outstanding achievement. Shell is very proud that the United Kingdom will now be added to the portfolio of markets supplied by Qatargas 4, which already includes Dubai, China and the United States.”
Established in 1984, Qatargas pioneered the LNG industry in Qatar and now has a production capacity of 42 million metric tons/year of LNG from its seven trains, delivering LNG safely and reliably to it customers in five continents.
The Qatargas 4 project is a joint venture between wholly-owned affiliates of Qatar Petroleum (70%) and Royal Dutch Shell plc (30%). Qatargas 4, a 7.8 million metric tons/year liquefaction plant, comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet per day of natural gas, including an average of approximately 70,000 bpd of condensates and petroleum products from Qatar's North Field over the 25-year life of the project.
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