Qatargas, the largest producer of liquefied natural gas (LNG) in the world with an annual production capacity of 42mn tonnes per annum (MTPA), has entered into a new sale and purchase agreement (SPA) with Centrica, the largest supplier of gas to households in the UK.
In accordance with the SPA, Qatargas will deliver up to 2MTPA of LNG to Centrica -- a leading international energy and services company, supplying approximately 28mn customer accounts mainly in the UK, Ireland and North America -- until 2023.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum (QP) (70%) and Shell (30%), with a production capacity of 7.8MTPA.
Qatargas-chartered Q-Flex and Q-Max LNG vessels will deliver the LNG to the Isle of Grain Terminal, in the UK.
“We are delighted to extend our strong relationship with Centrica and the UK. This agreement underscores Qatargas’ reputation as a safe and reliable supplier of LNG," Saad Sherida al-Kaabi, QP president and chief executive, and chairman of Qatargas, said.
This agreement, according to him, has the potential to positively contribute to the UK’s energy security for years to come.
“Qatargas is pleased to lengthen our existing partnership with Centrica – a partnership which dates back to 2011. This new agreement reinforces Qatargas’ commitment to building a strong relationship with customers, and our position as the leading supplier of LNG to the UK," Khalid bin Khalifa al-Thani, chief executive, Qatargas, said.
Qatargas had initially entered into a three-year contract with Centrica to supply LNG from June 2011. The company then inked a further four-and-a-half-year contract, with the latest five-year contract extending the agreement until December 2023.
“Centrica continues to grow its LNG portfolio, further developing its presence in the global LNG market. I am very pleased that our long-standing supply relationship with the world’s biggest LNG producer will continue,” according to Iain Conn, Centrica chief executive.