TEPCO inks LNG supply contract with Qatargas
Qatar Liquefied Gas Co. (Qatargas 1) has signed a long-term LNG sales and purchase agreement (SPA) with Japanese LNG buyer Tokyo Electric Power Co. (TEPCO).
At a ceremony in Doha, Qatar, the agreement was signed by Qatar’s minister of energy and industry (who is also Qatargas’ chairman of the board) and TEPCO’s managing director. This is the first long-term bilateral agreement between TEPCO and Qatargas. Under the terms of the agreement, Qatargas 1 will deliver 1 million tpy of LNG to TEPCO on a long-term basis beginning in 2012.
TEPCO is one of the original eight Japanese buyers who signed a multi-party contract with the Qatargas 1 venture back in 1994, and Qatargas first began delivering LNG to Japan and TEPCO in 1997. According to Qatargas, Japan is one of the biggest importers of LNG and this announcement marks the continued partnership between Qatar and Japan since diplomatic relations started 40 years ago.
“This agreement is further testimony of our long-term reliable commitment to Japan and reinforces Qatargas’ global reputation as a safe and reliable supplier of LNG,” said Khalid Bin Khalifa Al-Thani, Qatargas’ CEO. “Qatargas’ relationship with TEPCO goes as far back as 1994 when we signed an agreement with a consortium of Japanese buyers including TEPCO. Today, we are very pleased to add a new chapter to our long and fruitful partnership.”
Under the new agreement, in conjunction with existing arrangements, Qatargas will supply approximately 2 million tons of LNG to TEPCO in 2012. This represents 5% of Qatargas’ total production capacity.
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