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Qatargas signs LNG SPA with Petronas LNG UK

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LNG Industry,

According to Reuters, Qatargas has signed a five-year LNG sales and purchase agreement (SPA) with Petronas LNG UK.

Under the agreement, Qatargas will deliver 1.1 million tpy of LNG to the UK-based company until 31 December 2023. This will extend a current five-year contract that was set to expire on 31 December 2018.

The LNG will be sourced from the Qatargas 4 joint venture (JV) between Shell and Qatar Petroleum. The cargoes will be delivered to the Dragon LNG terminal, which is located in Milford Haven, the UK.

Reuters reports that Qatargas, in an effort to deal with an impending worldwide gas glut, is looking to expand import deals with Europe’s most liquid markets, including Britain and the Netherlands.

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