Qatargas sign 20-year deal to supply LNG to Malaysia

July 25, 2011 | LNG & LPG

LNG_Ship

Qatargas, the world’s largest producer of Liquefied Natural Gas (LNG), signed a 20-year deal to supply gas to Petronas LNG Ltd, a wholly-owned subsidiary of Malaysia’s Petronas.

Under the terms of the agreement, Qatargas will deliver one and half million tonnes per annum (MTA) of LNG to Malaysia for a period of at least twenty years beginning in 2013.

This is equivalent to about 5% of Malaysia’s current annual average domestic natural gas demand, which is growing at a rate of around 6% per annum, Qatar News Agency (QNA) reported.

The agreement was signed by Chief Executive Officer, Qatargas, Khalid Bin Khalifa Al Thani, and Director of Petronas LNG Ltd and Vice President of Global LNG, Petronas Adnan Zainol Abidin.

Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry and Chairman of Qatargas, said: “I am delighted that Qatargas and Petronas have entered into this Agreement for the supply of LNG to Malaysia.

Qatar and Malaysia have long enjoyed an excellent relationship and this transaction is further evidence of the strong ties between the two nations.”

Chief Executive Officer, Qatargas, Khalid Bin Khalifa Al Thani said: “It is the first time Qatargas has signed an agreement for supplying LNG to the South East Asian market.

“We are very pleased with this achievement as it represents the first long-term agreement for supplying LNG to one of the world’s fastest growing LNG markets.”

Qatargas will supply the agreed volumes to Petronas from the Qatargas 2 joint venture, onboard its Q-Flex fleet of vessels to Malaysia’s first regasification terminal.

The terminal is currently being constructed in Malacca and is expected to become operational by mid 2012, coinciding with the 25th World Gas Conference to be held in Kuala Lumpur in June the same year.

Qatargas, established in 1984, pioneered the LNG industry in Qatar.

Today, Qatargas is the largest LNG producer in the world with a production capacity of 42 million tonnes per annum of LNG, from its seven trains delivering LNG safely and reliably to customers in all over the world from its first class facilities in Qatar.