Qatargas has signed a Head's of Agreement (HOA) for a long-term LNG supply deal with Malaysia's national oil and gas company, PETRONAS LNG Ltd.
Petronas heralded the contract as 'strategic', while Qatargas reacted positively to the deal which constitutes the firm's first foray into the South East Asian market.
Under the terms of the HOA, Qatargas will deliver one and a half million tonnes per annum of LNG to Malaysia for a period of at least 20 years beginning in 2013. According to Qatargas, 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.
Khalid Bin Khalifa Al Thani, Chief Executive Officer of Qatargas was delighted with the agreement. He said, “It is the first time Qatargas has signed an HOA 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."
The CEO continued, "We look forward to a strong and long-term relationship with PETRONAS, one of the world’s premier energy companies. This milestone further demonstrates our commitment to supplying all corners of the globe with reliable LNG supplies.”
PETRONAS responded to the agreement positively. Indeed, Datuk Anuar Ahmad, Executive Vice President of Gas & Power at the firm remarked, “PETRONAS views Qatargas as a strategic long term supplier of LNG for Malaysia, ensuring its security of supply. The signing of this HOA marks another important milestone in the growing relationship between PETRONAS and Qatar Petroleum.”
Khalid Bin Khalifa Al Thani and Adnan Zainol Abidin, Director of PETRONAS LNG Ltd. and Vice President of Global LNG for PETRONAS, signed the agreement earlier this season at a ceremony held in Doha, Qatar.